Urban Company Files DRHP For INR 1,900 Cr IPO

Weeks after getting its board’s nod to raise INR 528 Cr via its IPO, consumer services unicorn Urban Company has filed its draft red herring prospectus (DRHP) for INR 1,900 Cr public issue.

The company’s IPO will comprise a fresh issue of up to INR 429 Cr, marking a near 19% reduction from the limit set by the company’s board. 

The company plans to utilise INR 190 Cr from the fresh issue for new technology development and cloud infrastructure. While it will use INR 70 Cr for lease payments for its offices, it will utilise INR 80 Cr for marketing activities.

Meanwhile, Urban Company’s existing investors will offload shares worth up to INR 1,471 Cr. While Accel will offload shares worth INR 433 Cr, Elevation Capital will sell INR 346 Cr worth of shares. Tiger Global will offload shares worth INR 303 Cr. 

On the financial front, Urban Company turned profitable in the first nine months of FY25 (9M FY25). It posted a profit before tax of INR 27.1 Cr in 9M FY25 as against a loss before tax of INR 57.8 Cr in the year-ago period. 

On the back of a deferred tax of INR 215.5 Cr, the company posted a profit after tax of INR 242.6 Cr in 9M FY25 as against a loss of INR 57.8 Cr in 9M FY24.

Meanwhile, its operating revenue rose 41% to INR 846 Cr during the period under review from INR 601 Cr a year ago. 

In FY24, Urban Company’s top line rose 30% to INR 827 Cr from INR 637 Cr in the previous fiscal. The company also trimmed its loss by 70% to INR 92.77 Cr from INR 312.48 Cr in FY23. 

It is pertinent to mention that Urban Company has cut its IPO size by about 37% compared to initially rumoured IPO size of INR 3,000 Cr. The volatility in the equities markets due to the ongoing global tariff war has resulted in many companies cutting their IPO sizes.

For instance, EV maker Ather Energy, whose IPO opened today, also cut its fresh issue size by 15% to INR 2,626 Cr from INR 3,100 Cr, which is planned to raise as per its DRHP.