Urban Company, the popular home services platform, has received approval from its shareholders to raise up to Rs 528 crore through an initial public offering (IPO). This move clears the final internal hurdle for the company to go public. The update comes from official filings made with the Registrar of Companies (RoC), signaling that the company is now preparing to list on the stock exchange.
Urban Company Reduces IPO Size
The Gurugram-based startup had earlier considered raising around Rs 3,000 crore but has decided to reduce the primary issue amount by over 80% due to current global economic challenges and market volatility. The revised amount of Rs 528 crore reflects a more cautious and focused approach to fundraising. Leading financial institutions like Kotak Mahindra Capital, Goldman Sachs, and Morgan Stanley are acting as advisors for this IPO.
According to reports, Urban Company is expected to file its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in the coming weeks.
Becomes Public Limited Company
Urban Company has already taken the required legal steps to go public. Last month, the company transitioned from a private to a public limited company, changing its official name from Urbancalp Technologies India Pvt. Ltd. to Urbanclap Technologies India Ltd. This legal change is crucial for advancing the IPO process.
Strong Market Presence and Growth
Urban Company operates in over 60 cities across India and in international markets, including Singapore, the United Arab Emirates, and Saudi Arabia. The platform connects over 55,000 service professionals with users who book beauty services, home cleaning, repairs, and more through the app.
For the financial year ending March 2024 (FY24), Urban Company recorded operating revenue of Rs 827 crore, a 30% rise compared to the previous year. The company also managed to reduce its net loss by 70%, bringing it down to Rs 93 crore. Currently, the platform processes around 2.2 million orders each month, with an average service ticket size of Rs 1,290.
IPO to Include Offer for Sale
In addition to the fresh issue of shares, the IPO will also include an offer-for-sale (OFS) component. This means some of the company’s existing investors will sell a portion of their shares during the IPO.
Urban Company has raised over $450 million in funding since its launch in 2014, with a peak valuation of $2.5 billion. Major investments include a $255 million Series F round led by Prosus and Dragoneer in 2021. The company has also expanded its portfolio with the launch of “Insta Maids,” a 15-minute maid booking service that pays workers by the hour.
The IPO marks a major step forward in Urban Company’s journey, giving it greater market visibility and providing liquidity to existing shareholders.
