Home services marketplace Urban Company has raised Rs 853.87 crore from a group of anchor investors, just days before the launch of its much-awaited Rs 1,900 crore IPO. This pre-IPO funding round highlights the growing confidence in the Gurugram-based startup, which has become India’s leading platform for on-demand home services.
The IPO includes a fresh share issue worth Rs 429 crore and an offer for sale of Rs 1,471 crore from existing investors. Urban Company’s strong anchor round indicates heavy institutional interest ahead of the main public offering.
Price Band and Allocation
As per regulatory filings, Urban Company has allocated 8.29 crore equity shares at Rs 103 per share, which is the upper limit of its IPO price band. The anchor placement ensures that the IPO starts with strong momentum, setting the tone for retail and institutional subscriptions.
Global investors such as Goldman Sachs, Dragoneer Investments, Norges Bank, GIC, Nomura, Amundi Funds, Steadview Capital, and WhiteOak participated in the anchor round. Their involvement underscores international confidence in the company’s long-term growth potential.
Strong Indian Participation
Domestic financial institutions also showed robust demand for Urban Company’s shares. Nearly 37% of the anchor allocation went to 13 Indian mutual funds across 29 schemes, including top names like SBI, HDFC, ICICI Prudential, Nippon, and UTI. This strong mix of foreign and Indian investors highlights the company’s credibility in both global and local markets.
The IPO will open for public subscription on September 10 and close on September 12. The price band is fixed at Rs 98 to Rs 103 per share, with a minimum bid lot of 145 shares.
Big Returns for Early Investors
Urban Company’s IPO is also expected to deliver significant returns for its early backers. Venture capital firm Accel, which holds a 10.51% stake, could earn a 28.5x return on its investment. Similarly, Elevation Capital, with a 10.84% stake, is poised for a 19.1x return, while Bessemer Venture Partners may see a 14.4x return.
These numbers reflect the long-term value creation by the company since its inception, further strengthening the appeal of the IPO to new investors.
Financial Growth Momentum
Urban Company’s financial performance adds further confidence to its public market entry. For the financial year ending March 2025, the firm reported a 38% rise in operating revenue to Rs 1,144 crore. It also posted a profit before tax of Rs 28.5 crore, marking a significant turnaround for a fast-growing consumer tech platform.
The consistent revenue growth signals both strong consumer demand and improved operational efficiency, positioning Urban Company well for sustainable profitability in the coming years.
Competition in Home Services
Urban Company operates in the rapidly growing home services sector, competing with platforms like Housejoy, QuikrEasy, and Amazon Home Services. However, its strong brand recall, high-quality partner network, and wide service range—from beauty and grooming to cleaning, appliance repair, and wellness—give it a competitive edge.
As India’s urban population increasingly shifts towards digital-first convenience, Urban Company stands at the forefront of an expanding industry that is expected to witness accelerated adoption in the next decade.
Future Outlook for IPO
With a successful anchor round, strong financials, and growing consumer adoption, Urban Company’s IPO launch on September 10 is being closely watched by both retail and institutional investors. The blend of international backing and Indian mutual fund participation provides a solid foundation for the issue.
If the IPO performs as expected, Urban Company could set a benchmark for future consumer services startups entering the public markets, while also validating the strength of India’s tech-driven service economy.
