Urban Company Raises Rs. 854 Cr Ahead of Rs. 1,900 Cr IPO

 

Urban Company, the Gurugram-based at-home services marketplace, has raised Rs. 854 crore (US$96.9 million) from anchor investors including GIC, Fidelity, and Norges Bank ahead of its much-anticipated Rs. 1,900 crore IPO, set to launch on September 10.

The offering includes a fresh issue worth Rs. 472 crore (US$53.5 million) and an offer-for-sale of Rs. 1,428 crore (US$162 million) by existing backers such as Accel, Elevation Capital, Tiger Global, Vy Capital, and Bessemer Venture Partners. Urban Company has set its IPO price band at Rs. 98–Rs. 103 per share, valuing the company at around Rs. 15,000 crore (US$1.8 billion) at the upper end. Shares are scheduled to list on September 17.

Key Highlights

• Urban Company raised Rs. 854 Cr from GIC, Fidelity & Norges Bank
• FY25 revenue reached Rs. 1,144 Cr with Rs. 240 Cr profit after tax
• IPO opens Sept 10 at Rs. 98–103 per share, valuing firm at Rs. 15,000 Cr

Financially, the company has demonstrated a remarkable transformation. Revenues surged from Rs. 45 crore in FY18 to Rs. 1,144 crore (US$130 million) in FY25, a 25x growth in seven years. Importantly, FY25 marked the company’s first full year of profitability, with Rs. 240 crore (US$27.2 million) profit after tax.

Analysts highlight that this trajectory underscores the scalability of marketplace platforms, where once infrastructure and networks are established, incremental transactions carry high margins.

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The strong institutional demand, coupled with a reported grey market premium of 28–35 percent, reflects investor confidence in the growing formalization of India’s home services sector. Existing investors like Prosus and Elevation Capital have increased their holdings, while new participants like SBI Mutual Fund and Permira entered via secondary sales at the upper price band, reinforcing optimism in the company’s growth potential.