Prosus To Double Down On Urban Company Via Secondary Deal

SUMMARY

Prosus is reportedly looking to make an investment of $30 Mn in Urban Company via secondary purchase, ahead of the startup’s anticipated IPO next year

The secondary transaction will happen at a flat $2.6 Bn valuation, as per report

Urban Company, previously, raised INR 400 Cr ($50 Mn) from VC firm Dharana Capital through a secondary deal, in July

Prosus, one of the most active investors in the Indian startup ecosystem, is reportedly looking to double down its investment on one of the portfolio companies ahead of the startup’s anticipated initial public offering (IPO) next year.

As per YourStory, Prosus is looking to inject $30 Mn (around INR 252 Cr) into the hyperlocal services startup Urban Company in a secondary deal, giving a partial exit to Bessemer Venture Partners.

Responding to the queries of Inc42, Prosus spokesperson said, “We do not comment on market speculation.”

Inc42 has reached out to Urban Company for comments on the development. The story will be updated based on the response.

The secondary transaction will happen at a flat $2.6 Bn valuation, the report added.

“Both Accel and Elevation Partners were discussing selling larger stakes but have dropped the plans and will only look at selling at the IPO (initial public offering),” sources added.

It further added, citing sources, although both firms were considering further stake sales, they have now put those plans on hold and will await the company’s IPO next year.

Notably, Prosus has poured in more than $7 Bn into Indian startups so far, according to data from Inc42 and Tracxn, mostly through large ticket sizes and investments in unicorns such as Swiggy, Meesho, Pharmeasy, The Good Glamm Group, Urban Company among others.

Urban Company, previously, raised INR 400 Cr ($50 Mn) from Bengaluru-based venture capital firm Dharana Capital through a secondary deal, in July. The transaction saw its employees and other shareholders liquidate their shares in Urban Company including two of its early investors Accel and Elevation Capital.

It is pertinent to note that Snapdeal cofounders Rohit Bansal and Kunal Bahl’s VC firm Titan Capital made their exit from the startup, with INR 111 Cr ($13.2 Mn), shortly after Urban Company’s $50 Mn fundraise.

In later July, Urban Company also posted a loss before tax of INR 93 Cr in the financial year 2023-24 (FY24), down 70% year-on-year from INR 312 Cr a year ago.

However, the Gurugram-based startup’s net revenue rose 30% YoY to INR 827 Cr, as per reports.