Urban Company files for Rs 1,900 Cr IPO

Urban Company Ltd. has filed for a Rs 1,900 crore initial public offering (IPO), comprising a Rs 472 crore fresh issue and a Rs 1,428 crore offer for sale by existing investors, including Accel, Bessemer Venture Partners, Elevation Capital, Tiger Global, and Vy Capital. 

The issue will open on September 10 and subsequently close on September 12. The company’s shares will list on both the BSE and NSE.

The Gurugram-based company, founded in 2014 as UrbanClap by Abhiraj Singh Bhal, Raghav Chandra, and Varun Khaitan, reported its first annual profit in FY25 after several years of losses.

Urban Company's revenue climbed from Rs 656.6 crore in FY23 to Rs 885.9 crore in FY24, before surging to Rs 1,373.5 crore in FY25. The company reported a net profit of Rs 135 crore in FY25, reversing losses of Rs 178.8 crore in FY24 and Rs 496.7 crore in FY23.

In FY25, beauty and wellness services contributed Rs 720 crore, accounting for just over half of the company's total revenue. Home repairs and maintenance generated Rs 360 crore, cleaning and pest control Rs 210 crore, and other services such as painting and fitness Rs 83 crore.

By geography, India generated Rs 1,275 crore, or about 93% of revenues, while international markets in the UAE, Singapore, and Australia accounted for Rs 99 crore.

The company also improved its operating cash flows, turning from negative Rs 408.3 crore in FY23 and negative Rs 85.1 crore in FY24 to positive Rs 212.6 crore in FY25. Its net worth increased to Rs 855.9 crore, while borrowings stood below Rs 60 crore at the end of the last fiscal year.

The prospectus also discloses ongoing disputes with tax authorities over GST classification and labor-related cases where service professionals have sought recognition as employees. A change in regulatory treatment of gig workers could increase the company’s obligations.

Of the total IPO size, Rs 1,428 crore will go to selling shareholders, with Rs 472 crore to be retained by the company. The company has stated that it plans to use the proceeds from the fresh issue for technology development, marketing, working capital, and general corporate purposes.