Urban Company Slashes IPO Size by Over 80%, Gets Shareholder Approval for INR 528 Crore Offering

According to documents filed with the Registrar of Companies (RoC), the board of directors of home services startup Urban Company has approved the company's plan to raise INR 528 crore (about $60 million) in new capital through an initial public offering (IPO). In order to provide stockholders with a legitimate marketplace for dealing with equity shares, the company plans to list its equity shares on one or more stock exchanges. Up to a total of INR 528 crore ($60.6 million), the business plans to establish, offer, issue, and distribute new equity shares with a face value of INR 1 each. Initially, the Accel-backed business intended to submit draft documents for a possible INR 3,000-crore IPO this year. Its goal size is now more than 80% smaller, nonetheless. The IPO size has reportedly been drastically reduced as a result of the unstable market.

Entering the Quick Commerce Space  

According to reports, the company has chosen Morgan Stanley, Goldman Sachs, and Kotak Mahindra Capital to oversee the public offering. In the near future, the business is anticipated to submit its draft red herring prospectus (DRHP) to market watchdog SEBI. The preparations for Urban Company's listing follow the startup's entry into India's quickly expanding quick commerce industry. In order to explore this space, the brand has introduced its new product, Insta Maids, a 15-minute maid booking service. This comprises hourly-paid maids performing tasks like culinary preparation, brooming and mopping, and utensil cleaning.

Urban Company’s Market Performance

According to statistics from the market intelligence platform Tracxn, Urban Company has raised up to $376 million in funding over the course of 12 rounds and was last valued at $2.5 billion. In 2021, the business raised $255 million in its most recent significant fundraising round. This round was headed by investors Wellington Management, Prosus, and Dragoneer. In addition to activities in international markets like Singapore and Saudi Arabia, the marketplace for home services and beauty salons is present in more than 30 Indian cities. With an average order value of INR 1,290, the platform, which links gig workers with home services, processes 2.2 million orders every month on average. According to Urban Company, 23 million services were delivered on the platform in FY24 by 57,000 partners. Up to 13 firms went public in 2024, propelled by India's thriving public marketplaces. With over 25 firms waiting to go public this year, this number was predicted to rise sharply in 2025. However, many of these businesses may be forced to reconsider their listing ambitions due to the unstable market conditions brought on by the US trade war.