Urban Company IPO

The company’s revenue from operations jumped 38% in FY25 to ₹1,144.46 crore from ₹828 crore in FY24. Growth was seen in every segment: platform services (₹742.4 crore vs ₹560 crore), Native products (₹116 crore vs ₹28.77 crore), customer membership (₹97.75 crore vs ₹91.3 crore), and products sold to professionals (₹188.27 crore vs ₹147.93 crore).

Its Indian consumer services grew 24% to ₹881.39 crore, helped by 17% more active users (6.54 Mn vs 5.59 Mn) and higher service demand (NTV up 20% to ₹2,667.2 crore). Native product sales surged 303% due to water purifiers and smart locks. International revenue rose 64% to ₹1,47.05 crore, with global users up 41% (0.24 Mn vs 0.17 Mn).

The company’s EBITDA margin improved from -46.8% in FY23 to 1.1% in FY25, and to 5.7% in Q1 FY26, indicating growing operational efficiency and profitability in its core services.

It is India's leading online full-stack home services provider, with an established brand trusted by customers. This trust is reflected in an average consumer rating of 4.79 out of 5.0 for its service professionals, as per the RHP.

Its platform successfully engages 54,347 average monthly active service professionals as of June 30, 2025. These professionals, receiving in-house training and tools, typically earn 30-40% more than their non-platform peers in FY25.

Beyond a wide array of home and beauty services, it strategically offers its 'Native' brand products. These include water purifiers and electronic door locks, with its RO water purifiers achieving the lowest total cost of ownership among leading brands in FY25. With its multiple revenue streams, it earned 65% of its revenue from platform fees, while products sold to professionals, Native products, and membership & support contributed 16%, 10%, and 9%, respectively.

Urban Company reported a profit of ₹239.76 crore in FY25. However, a significant portion of this profit, ₹211.21 crore, was due to a deferred tax credit. Without this tax benefit, the company's profit before tax for FY25 was ₹28.55 crore.

Though the EBITDA margin for the company improved during Q1 FY26 as compared to the same quarter in the previous financial year, its net profit after tax dropped 55% YoY to just ₹5.63 crore in Q1 FY26 (excluding gain due to deferred tax).

A significant portion (75%) of the IPO funds, ₹1,428 crore, comes from an offer for sale, which will be paid to existing selling shareholders and will not be used for the company's business growth or operational needs. The company will only get the remaining ₹472 crore for capex to grow its business.

The company operates in intensely competitive and fragmented markets with evolving consumer preferences and low online service penetration. The Indian home services industry is largely unorganized and offline, with online penetration less than 1% as of FY25.

Auditors noted a period from October 1, 2024, to January 26, 2025, where backups of certain electronic books of account for one application were maintained on servers located in Sydney, Australia, instead of daily on servers physically located in India. Full backups were later restored in India from January 27, 2025.