New Delhi, September 1 — Consumer services unicorn Urban Company has filed its red herring prospectus (RHP) with the Securities and Exchange Board of India (SEBI) for a ₹1,900 crore initial public offering (IPO). The issue comprises a fresh issue of ₹472 crore and an offer-for-sale (OFS) of ₹1,428 crore, with shares to be listed on the BSE and NSE.
Urban Company’s Journey to IPO
Founded in 2014, Urban Company operates a leading tech-enabled home and personal services platform, offering beauty, grooming, cleaning, appliance repair, and home improvement services across Indian metros and select international markets.
The startup achieved unicorn status in 2021 after a funding round led by Prosus Ventures. Its investor base includes global venture capital firms Accel, Elevation Capital, Tiger Global, and Vy Capital.
Urban Company has been expanding aggressively, launching offerings such as Revamp (home makeovers) and InstaHelp (15-minute house help services), alongside developing in-house products under its “Native” brand.
Urban Company’s ₹1,900 Cr IPO Filing
The IPO is scheduled to open on September 10 and close on September 12, with allocations to qualified institutional buyers (QIBs), non-institutional investors, and retail investors.
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Key details from the RHP:
Urban Company IPO Breakdown:
- Total Size: ₹1,900 crore
- Fresh Issue: ₹472 crore (increased from ₹429 crore)
- Offer-for-Sale (OFS): ₹1,428 crore (reduced from ₹1,471 crore)
- Key Selling Shareholders:
- Accel: ₹390 crore
- Elevation Capital: ₹346 crore
- Tiger Global: ₹303 crore
The company has revised its fundraising structure by boosting the fresh issue size by 10% while slightly trimming the OFS portion.
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Service Unicorns in Public Markets
Urban Company’s IPO comes at a time when consumer internet startups are eyeing public markets to raise growth capital amid improving investor sentiment. The move signals confidence in India’s on-demand services sector, which has seen increased adoption in Tier-1 and Tier-2 cities.
The company plans to utilize IPO proceeds for:
- ₹190 crore: Technology development & cloud infrastructure
- ₹90 crore: Marketing activities
- ₹75 crore: Office lease payments
- Additional funds: Building a multi-category checkout system for bundling services in one transaction
With increasing competition from both organized and unorganized service providers, the IPO is expected to set a benchmark for asset-light, service-focused consumer tech companies seeking scale through digital marketplaces.
Investor & Analyst Perspectives
Industry analysts note that Urban Company’s path to profitability strengthens its IPO appeal.
- In FY25, the company reported a net profit of ₹239.7 crore, reversing a loss of ₹92.7 crore in FY24.
- Operating revenue surged 38% to ₹1,144.5 crore, up from ₹828 crore the previous year.
- However, Q1 FY26 profits dropped 45% to ₹6.9 crore, reflecting short-term cost pressures.
An investment banker tracking the issue said:
“Urban Company’s ability to show profitability ahead of listing differentiates it from earlier loss-making startup IPOs. Its diversified service portfolio and increasing take-rates from partners give it a strong long-term growth story.”
What Lies Ahead for Urban Company
Urban Company is expected to deploy fresh capital into expanding its technology stack and scaling newer verticals, such as home makeovers, InstaHelp, and its in-house appliances under the Native brand.
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The startup is also betting on offline-to-online convergence, offering services like painting, wall panels, and home repairs that require deeper investments for scale.
Market watchers believe the IPO will serve as a litmus test for India’s consumer services sector, determining whether public investors are ready to back scalable, tech-driven service marketplaces.
Disclaimer
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