Urban Company, India’s largest tech-enabled at-home services marketplace, has taken a big step towards becoming a listed company. On 28 April 2025, the Gurugram-based company filed its Draft Red Herring Prospectus (DRHP) with SEBI for an INR 1,900 crore IPO. This is a big milestone for India’s digital-first home services sector and shows the growing investor interest in platforms that combine physical services with digital delivery models.
Urban Company IPO Structure
The Urban Company IPO is structured as follows:
- Fresh Issue of Equity Shares: INR 429 crore
- Offer for Sale (OFS): INR 1,471 crore
The fresh issue proceeds will be used:
- INR 190 crore: Investment in new technology development and cloud infrastructure
- INR 70 crore: Lease payments for office spaces
- INR 80 crore: Marketing and brand development initiatives
- Remaining: General corporate purposes
This is a balanced approach with growth capital and liquidity events for early investors.
Major Investors Cashing Out in the OFS
Early backers are expected to partially exit their positions, highlighting confidence in returns and signaling the company’s transition into a more stable growth phase. The key investors and their respective exits include:
| Investor | Exit Value |
|---|---|
| Accel India IV (Mauritius) Ltd. | 433 |
| Elevation Capital V Ltd. | 346 |
| Internet Fund V Pte. Ltd. (Tiger Global) | 303 |
| VYC11 Ltd. (Vy Capital) | 216 |
| Bessemer India Capital Holdings II Ltd. | 173 |
The founders — Abhiraj Singh Bhal, Varun Khaitan, and Raghav Chand
Advisors and Market Intermediaries
Urban Company has appointed the following book-running lead managers:
- Kotak Mahindra Capital Company
- Morgan Stanley India Company
- Goldman Sachs (India) Securities
- JM Financial
MUFG Intime India will act as registrar of the issue.
Business Model
Urban Company is a vertically integrated platform offering a wide range of household and personal care services. As of 31 December 2024, it was present in 59 cities across India, UAE, Singapore, and Saudi Arabia (via JV). Key service verticals are:
- Home Maintenance: Cleaning, pest control, plumbing, electricals, carpentry, appliance repair
- Beauty and Wellness: Skincare, hair grooming, massage therapy
- D2C Product Sales: Water purifiers and smart locks under the brand “Native”
The platform works:
- Service booking through the mobile app
- Demand and supply matching using algorithms
- 48,000+ verified service professionals empowered through training, branding and tools
Urban Company IPO – Financial Highlights
Urban Company’s financial performance reflects strong operational execution and efficiency improvements.
| Metric | 9M FY25 | FY24 | FY23 |
|---|---|---|---|
| Revenue from Operations | 846 | 828 | 636 |
| Net Profit / (Loss) | 242 | (928) | (3,124) |
| Contribution Margin (%) | 19.4% | 18.8% | 16.5% |
| Adjusted EBITDA Margin (%) | 1.1% | -14.3% | -46.8% |
A significant portion of the net profit is attributable to a one-time deferred tax credit, but even excluding that, the company’s operational profitability is a major turnaround from steep historical losses.
Urban Company’s business is divided into three segments:
- India Consumer Services
- Native (Product Sales)
- International Business
Segment-wise Adjusted EBITDA Margins (9M FY25)
- India Consumer Services: 11.87%
- Native: -41.02%
- International Business: -31.84%
India is the cash cow, with good contribution and EBITDA margins, while international and Native are still in investment mode.
Market Opportunity: Online Penetration <1% in a $97.4B Market
According to the Redseer Report, India’s home services market was USD 59.2 billion (~INR 5.04 lakh crore) in 2024, with a CAGR of 10-11%, expected to reach USD 97.4 billion (~INR 8.30 lakh crore) by 2029. Urban Company is the largest platform by Net Transaction Value (NTV) and has a first-mover advantage.
Urban Company has also positioned itself as a quality-first platform with an average service rating of 4.82/5, driven by structured SOPs, standardized service units and continuous professional training.
Final Verdict
Urban Company’s IPO comes at a time when Indian capital markets are cautious but open to digital-first businesses with tangible cash flows. Its turnaround from losses to profit (albeit aided by tax credit), strategic capital allocation, founder retention and proven unit economics in India makes it a compelling case for long-term investors.
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