Urban Company to hit Dalal Street soon; files DRHP with SEBI to raise Rs 1,900 crore via IPO

Home services marketplace Urban Company has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise Rs 1,900 crore through an initial public offering (IPO). 

The listing will comprise a fresh issue of shares worth Rs 429 crore (approximately $50 million) and an offer for sale (OFS) component valued at Rs 1,471 crore, according to the filing.

Early investors to partially exit

The IPO will see early investors such as Accel India, Elevation Capital, Tiger Global, VY Capital, and Bessemer Venture Partners partially exiting their holdings. Among them, Accel is set for the largest exit, selling shares worth Rs 433 crore, followed by Elevation Capital at Rs 346 crore, Tiger Global at Rs 303 crore, VY Capital at Rs 216 crore, and Bessemer at Rs 173 crore. 

Urban Company, founded in 2014 by Abhiraj Singh Bhal, Varun Khaitan, and Raghav Chandra, plans to list on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

The offering will be managed by Kotak Mahindra Capital, Morgan Stanley, Goldman Sachs, and JM Financial, who have been appointed as book-running lead managers. 

The company's three co-founders, who collectively hold approximately 20% of the equity, will not be selling any shares in the IPO. It's worth noting that the founders have already sold shares worth Rs 780 crore through secondary transactions between September 2024 and February 2025.

Early backers set for windfall returns 

According to the DRHP, Elevation Capital is Urban Company's largest external shareholder with a 10.84% stake, followed by Accel India at 10.5% and VY Capital at 9.18%. Steadview and Prosus own 6.8% each, while Bessemer and Tiger Global hold 6.46% and 4.73%, respectively.

Accel's anticipated exit value is noteworthy—it is expected to be 16.6 times larger than Tiger Global's, and 5.6 times bigger than VY Capital's, highlighting the significant upside captured by its early bet on Urban Company.

Snapdeal founders Kunal Bahl and Rohit Bansal, through their early-stage vehicle Titan Capital, also secured a 200x return when they sold their Urban Company stake last year.

Use of proceeds and financial performance 

Urban Company plans to deploy Rs 190 crore of the fresh capital towards enhancing its technology and cloud infrastructure, with additional funds allocated for office lease payments, marketing, and general corporate purposes.

The Gurugram-based company has shown strong financial momentum ahead of its public debut. For the nine months ending December 2024 (FY25 YTD), Urban Company posted revenue from operations of Rs 846 crore—a year-on-year increase of nearly 41%—and turned profitable with a net profit of Rs 27.1 crore, after reporting a loss of Rs 92.7 crore in the full fiscal year ending March 2024.

Business expansion

Urban Company has also broadened its services beyond home repairs and cleaning to include direct-to-consumer offerings such as water purifiers and smart locks. In March 2025, it introduced a quick-booking feature allowing customers to hire house help within 15 minutes.

Urban Company’s IPO comes at a time when India’s consumer services sector is undergoing rapid digitalisation, with households increasingly opting for tech-enabled solutions for everyday needs. The home services market is projected to grow steadily over the next few years, driven by rising urbanisation, dual-income households, and growing demand for verified professionals.