Urban Company Files INR 1,900 Cr IPO Papers

SUMMARY

The consumer services unicorn's IPO will constitute a fresh issue of INR 472 Cr along with an OFS component of INR 1,428 Cr

Although the overall size of the public offering is same as the DRHP, the company has increased its fresh issue size by 10% from the initially proposed INR 429 Cr

In FY25, Urban Company reported a net profit of INR 239.7 Cr against a net loss of INR 92.7 Cr in the previous fiscal while its operating revenue surged 38% to INR 1,144.5 Cr

Just hours after receiving SEBI’s official go-ahead, consumer services unicorn Urban Company filed its red herring prospectus (RHP) for a INR 1,900 Cr IPO.

The startup’s public offering will constitute a fresh issue of INR 472 Cr along with an offer-for-sale (OFS) element of INR 1,428 Cr. The issue will open on September 10 and subsequently close on September 12. The company’s shares will list on both the BSE and NSE.

Although the overall size of the public offering is same as the DRHP, the company has increased its fresh issue size by 10% from the initially proposed INR 429 Cr. Further, the OFS component has been reduced by 3% from INR 1,471 Cr.

In this, Accel cut its share sale by INR 43 Cr to NR 390 Cr. Meanwhile, Elevation Capital will sell INR 346 Cr worth of shares and Tiger Global will offload shares worth INR 303 Cr.

Urban Company Profit Shrinks

On the financial front, the company’s profits for Q1 FY26 slid 45% to INR 6.9 Cr from INR 12.6 Cr in the year-ago quarter. Its operating revenue grew 24% to INR 367.3 Cr from INR 280.1 Cr in Q1 FY25.

In FY25 the company booked a net profit of INR 239.7 Cr against a net loss of INR 92.7 Cr in FY24, and operating revenue rose 38% YoY in FY25 to INR 1,144.5 Cr.

The company plans to utilise INR 190 Cr from the fresh issue for new technology development and cloud infrastructure. While it will use INR 75 Cr for lease payments for its offices, it will utilise INR 90 Cr for marketing activities.

Besides, the company said that it plans to utilise the fresh funds in building a multi-category checkout, allowing consumers to book multiple services in a single transaction for convenience and efficiency. The development of the feature is planned in-house, the company’s RHP read.

Important to mention that the company has been busy diversifying its revenue streams ahead of its public offering. While it rolled out micro home makeover offering Revamp last week, it forayed into 15-minute house help services InstaHelp. It plans on making future investments to grow these offerings.

“The new service offerings on our platform such as our painting and wall panels services, our water purifiers and electronic door locks under our ‘Native’ brand and our InstaHelp offering, require us to make investments and develop scale in order to achieve profitability,” the company said.