Urban Company IPO
IPO Price Range: Not Announced Yet
The company allows consumers to avail of services at home, including cleaning, pest control, electrician, plumbing, carpentry, appliance servicing and repair, painting, skincare, hair grooming, and massage therapy. During FY23 and FY24, it also ventured into home solutions by launching water purifiers and electronic door locks, respectively, under the ‘Native’ brand. Urban Company operates three business segments, including India consumer services, Native, and international business.
Urban Company IPO size is ₹1,900 crore, which includes a fresh issue of ₹429 crore and an offer for sale (OFS) of ₹1,471 crore. Investors of the company, including Accel India, Bessemer India Capital, Elevation Capital, Tiger Global, and VYC11 Limited, are participating in the OFS. Urban Company IPO date is not officially announced yet, it has filed the DRHP with the SEBI on April 28, 2025. The company was converted into a public company on February 8, 2025.
IPO Status
Upcoming
Listing Exchange
NSE
Urban Company Brands, Products & Services
India consumer services
Consumers can avail home services including cleaning, pest control, servicing, and repair of appliances, handyman services, and more. It also offers skincare, haircare, and massage therapy for both men and women, under the beauty and wellness segment.
Native
Launched during FY23 to FY24, the company sells products such as water purifiers and electronic door locks to consumers in India and overseas markets.
| Product | Home Services Marketplace |
| Known For | Home and Beauty Services |
| Top Products | Water Purifier, Electronic Door Locks |
Urban Company Key Financials
Objectives of Urban Company IPO
Shareholding Pattern
| Promoters | 20.01% | |
| Name | Role | Stakeholding |
| Abhiraj Singh Bhal | Promoter | 6.67% |
| Raghav Chandra | Promoter | 6.67% |
| Varun Khaitan | Promoter | 6.67% |
| Public | 79.99% | |
| Name | Role | Stakeholding |
| Elevation Capital | Investor | 10.84% |
| Accel India | Investor | 10.51% |
| VYC11 Limited | Investor | 9.18% |
| Steadview Capital | Investor | 6.8% |
| Naspers Ventures | Investor | 6.8% |
| Bessemer India Capital Holdings | Investor | 6.46% |
| Others | 29.4% |
Unlisted Competitors of Urban Company
Housejoy
A home services marketplace offering repairs, cleaning, beauty, and renovation. It connects users with service professionals and earns revenue via commissions.
Sulekha
A local services aggregator that matches users with service providers based on location and need. It generates money through lead generation fees.
NoBroker Services
It is a home services arm of the NoBroker platform, offering packers & movers, cleaning, and rental services. The company monetizes via bundled service packages.
Strengths and Risks of Urban Company IPO
Strengths
The company operates at a hyperlocal level to minimize the travel distance of service professionals and ensure faster service fulfillment. In 2024, this translated a 30-40% more average earnings than for services professionals compared to their peers who are not associated with any such platform.
Along with adding new customers, the company also consistently improved its customer retention significantly YoY. Its Net Transaction Value (NTV) increased 22.73% in FY24, where the contribution from retained users increased from 76.5% in FY23 to 79.9% in FY24.
It has managed to grow revenue significantly year on year. In FY24, the company’s revenue went up 27.8% to ₹928 crore, while in FY23, it had achieved 42.7% growth to ₹726.2 crore.
The company has managed to gain the trust of consumers, which can be witnessed from their average ratings (4.83 out of 5 as of December 2024) to the service professionals.
The company focused on leveraging technology like machine learning (ML) and artificial intelligence (AI) to manage micro markets for balancing consumer location, time, and service professional availability for efficient delivery of services.
Risks
Urban Company has incurred losses, and its operating cash flows have also been negative in the past. In FY24, its net loss was at ₹93 crore, and net operating cash flows were at ₹86 crore. Even on the EBITDA level, the company is not profitable as of FY24.
The company is highly dependent on its service professionals, and it has witnessed many strikes by them in the past. Such strikes and the company’s inability to fulfil their demands or find a solution can significantly impact its business performance.
The business of the company faces significant operational risks from inappropriate or harmful actions by service professionals or third parties. Despite background checks, inaccurate information during screening, misconduct during service delivery, and fraud in payment systems can be harmful to the company's reputation.
It acquires products for sale to service professionals and Native brands from third-party suppliers. In FY24, the company paid nearly ₹90 crore to 204 suppliers for the procurement of the products.
There are pending legal cases against the company, subsidiaries, and key individuals. If any of the cases have unfavorable outcomes, it may increase the cost to the company in terms of penalties or liabilities.
Frequently Asked Questions of Urban Company IPO
What is 'pre-apply' for Urban Company IPO?
'Pre-apply' for Urban Company IPO indicates your interest in the IPO before it opens for subscription. This ensures quick application when the IPO goes live.
What would be the listing gains on the Urban Company IPO?
The potential listing gains on the Urban Company IPO will depend on various market factors and cannot be predicted with certainty.