Urban Company Plans ₹3,000 Crore IPO by March End

Urban Company, a leading home services platform, is gearing up for a significant ₹3,000 crore initial public offering (IPO), according to a report by Livemint, which cites insider sources. The company is expected to file draft papers before the end of the March quarter.

To facilitate the IPO process, Urban Company has enlisted investment banking firms, including Goldman Sachs, Morgan Stanley, and Kotak Mahindra Capital.

The IPO will comprise both a fresh issue of shares and an offer-for-sale component. Backed by investors such as Prosus, Steadfast Capital, and Tiger Global, the company was last valued at $2.1 billion in June 2021 after securing ₹255 million in funding from investors like Prosus, Wellington Management, and Dragoneer.

Urban Company operates as a technology-driven platform that enables users to book a wide range of home services, including beauty treatments, massage therapy, haircuts, cleaning, plumbing, appliance repairs, painting, and carpentry. With a network of over 50,000 partners, the company has catered to more than 12 million customers.

CEO Abhiraj Singh Bhal recently disclosed that the company achieved profitability in the April-June quarter of the financial year 2024-25. During this period, revenue stood at ₹282 crore. He further stated that the company expects annualized revenue to reach ₹1,140 crore and confirmed that India remains its primary market, contributing 90% of total revenue. Meanwhile, operations in the UAE are nearing profitability.

"This quarter (June 2024) marks our first profitable quarter, and we expect the revenue to annualize to Rs 1,140 crore. We are now fully profitable at the company level. India remains the primary market, contributing 90% of the total revenue, with the UAE close to profitability," Bhal had said during a conversation on the Environmental, Social, and Governance (ESG) report.

Several other startups, including CarDekho, Zepto, PhysicsWallah, Ather Energy, Ecom Express, and BoAt, are also preparing to go public in 2025. In December, the Securities and Exchange Board of India (SEBI) granted approval for electric two-wheeler manufacturer Ather Energy to launch an IPO, comprising a fresh issue worth ₹3,100 crore alongside an offer-for-sale of 2.2 crore shares.