Urban Company files draft papers to raise Rs 1,900 Cr in IPO; to boost cloud infra
Urban Company's investors including Tiger Global, Accel India, Bessemer, and Vy Capital are cumulatively expected to offload shares worth Rs 1,471 crore.
On-demand services platform Urban Company has targeted raising Rs 1,900 crore through the initial public offering (IPO), according to its draft red herring prospectus (DRHP).
The IPO will comprise a fresh issue size of Rs 429 crore. This component is smaller than the shareholder approval for Rs 528 crore secured from Urban Company's board earlier this month.
The DRHP filed with the Securities and Exchange Board of India (SEBI) also includes an offer-for-sale component worth Rs 1,471 crore. It will see Accel India and Elevation Capital offload 4.33 billion and 3.46 billion shares, respectively.
Bessemer India and Tiger Global, through Internet Fund V, are expected to offload shares worth Rs 173 crore and Rs 303 crore, respectively. Meanwhile, VY Capital is expected to offload shares worth Rs 216 crore.
Urban Company plans to utilise the majority of proceeds to develop new technology and cloud infrastructure. It also plans to spend a portion towards marketing efforts and overheads for its office space.
During the financial year ended March 2024, the Delhi-NCR-based company clocked Rs 828 crore in revenue, a 30% growth from Rs 636.5 crore it clocked in FY23. During the same period, it managed to narrow its loss to Rs 92 crore from Rs 312.4 crore in FY23. It is yet to make it FY25 financial records public.
Kotak Mahindra Capital, Morgan Stanley India, Goldman Sachs, and JM Financial are the lead bookrunning managers for the IPO.
Founded almost a decade ago by Abhiraj Bhal, Raghav Chandra, and Varun Khaitan, Urban Company last raised primary funding in 2021 from a host of investors, including Tiger Global Management, Dragoneer, Steadview, and Prosus, among others. The company was valued at $2.6 billion then.
Edited by Kanishk Singh