Urban Company Files DRHP for INR 1,900 Crore IPO, Stake Sale by Accel, Elevation, and Tiger Global

Muskaan Kapoor

28 Apr 2025 — 3 min read

Urban Company Files DRHP for INR 1,900 Crore IPO

Urban Company, a leading on-demand services platform, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO) valued at up to INR 1,900 crore. The IPO is a mix of a primary issuance and an offer-for-sale (OFS) by existing investors, aimed at boosting the company’s growth and technological capabilities.

Structure of the IPO

Urban Company’s IPO will comprise two components: a fresh issue of shares worth INR 429 crore and an offer-for-sale (OFS) of INR 1,471 crore. The initial approval from the company’s board was for a fresh issue size of INR 528 crore, but the DRHP indicates a reduction to INR 429 crore. This will be used primarily for technology development, including cloud infrastructure, as well as marketing and operational expenses.

Key Shareholders and Ownership Breakdown

As per the details in the DRHP, Elevation Capital holds the largest share of 10.84% in Urban Company, making it the biggest external stakeholder. Following closely are Accel India with 10.5% and VY Capital, which owns 9.18%. Other notable investors include Steadview and Prosus, each possessing 6.80% of the company. Additionally, Bessemer India and Tiger Global own 6.46% and 4.73%, respectively. The company’s co-founders, Abhiraj Singh Bhal, Varun Khaitan, and Raghav Chandra, together own 20.01% of the company, with their stakes equally distributed among them.

Offer-for-Sale (OFS) Component

The offer-for-sale component will see several major investors offload shares:

Accel India plans to sell shares worth INR 433 crore.
Elevation Capital will offer shares worth INR 346 crore.
Tiger Global (via Internet Fund V) is set to offload INR 303 crore worth of shares.
Bessemer India and VY Capital will also participate, selling shares valued at INR 173 crore and INR 216 crore, respectively.

Financial Growth and Future Plans

Urban Company has demonstrated strong financial performance. For the financial year ending March 2024, the company reported a revenue of INR 828 crore, marking a 30% growth from INR 636.5 crore in the previous fiscal year. In terms of profitability, the company successfully narrowed its losses to INR 93 crore from a more substantial loss of INR 312.4 crore in FY23, reflecting its ongoing efforts to improve operational efficiency.

The company plans to allocate the IPO proceeds towards developing its technological infrastructure and enhancing its digital capabilities. Also, some funds will be used for expanding marketing efforts and covering overhead costs, including expenses related to office space.

Company Background and Market Position

Urban Company was founded nearly a decade ago by Abhiraj Bhal, Raghav Chandra, and Varun Khaitan. Since its inception, the company has grown to become a leader in the on-demand services industry, offering a variety of services such as beauty treatments, appliance repairs, plumbing, and cleaning.

Lead Managers and Investor Expectations

The lead bookrunning managers for the IPO include Kotak Mahindra Capital, Morgan Stanley India, Goldman Sachs, and JM Financial. With a strong track record and expanding market demand, Urban Company’s IPO is expected to generate significant interest from investors, looking to tap into the fast-growing home services market.