By the End of March, Urban Company Expected to Submit Draft Documents for an INR 3K Cr IPO
According to reports, Urban Company, a startup providing hyperlocal services, plans to submit draft documents for its INR 3,000 Cr IPO by the end of March. According to a report that cited sources, the company will issue both new and existing shares in its first public offering (IPO). The business will primarily raise primary capital, it stated. The business has enlisted Morgan Stanley, Goldman Sachs, and Kotak Mahindra Capital to supervise the procedure. As stated in October of last year, Prosus, one of its investors, intends to increase its stake in the business in anticipation of its initial public offering. In a secondary transaction, Prosus wants to invest $30 million (about INR 252 crore) in the hyperlocal services company Urban Company, providing Bessemer Venture Partners with a partial exit.
Raising INR 400 Cr Last Year
Through a secondary deal last July, Urban Company raised INR 400 Cr ($50 Mn) from Dharana Capital, a Bengaluru-based venture capital firm. Employees and other shareholders sold their shares of Urban Company as part of the deal. The fundraising event took place at the same time as Titan Capital, the venture capital (VC) firm that cofounded Snapdeal with Rohit Bansal and Kunal Bahl, completely left the startup. In October of last year, the company also established a joint venture (JV) with Saudi Manpower Solutions Company (SMASCO) to launch a new home services platform in Saudi Arabia.
Current Financial Report of Urban Company
In terms of finances, the business reduced its losses in the fiscal year 2023–2024 (FY24) by 70%. In the fiscal year 2023–2024 (FY24), Urban Company reported a loss before tax of INR 93 Cr, a 70% decrease from INR 312 Cr in the previous year. In FY24, the company's operating EBITDA dropped to INR 116 Cr from INR 297 Cr in FY21. The current fiscal year (FY25) saw Urban Company generate INR 281 Cr in sales during the first quarter (Q1).
In addition to activities in international markets like Singapore and Saudi Arabia, the brand is present in more than 30 Indian cities. According to Urban Company, 23 million services were delivered on the platform in FY24 by 57,000 partners. The company was founded in 2014 by Varun Khaitan, Abhiraj Singh Bhal, and Raghav Chandra. It is a technology-driven platform that links clients looking for home services with gig workers. Among other services, its offering includes cleaning, plumbing, appliance repair, and spa and beauty treatments. The company recently introduced a line of water purifiers as part of its diversification into branded household goods.
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