Urban Company IPO: Accel To Rake In 27X Gain, Elevation To Pocket 19X Return

With shares of Urban Company expected to start trading tomorrow following its INR 1,900 Cr IPO, the company’s early investors like Accel, Elevation Capital, Tiger Global, among others, are set to rake in big gains. 

Accel, which first invested in the startup in April 2015, sold shares worth up to INR 390 Cr in the IPO via the offer for sale (OFS).  At the upper end of the price band of INR 98 to INR 103 per share, Accel India IV offloaded about 3.79 Cr shares, netting nearly 27X return on its average acquisition cost of INR 3.77 per share. 

Elevation Capital V (formerly SAIF Partners) sold 3.36 Cr shares worth INR 346 Cr, translating to about 19X gain on its average acquisition cost of INR 5.39. Bessemer India offloaded 1.68 Cr shares for INR 173 Cr, locking in around 14X return on its acquisition cost of INR 7.14 per share. 

Vy Capital sold 2.10 Cr shares worth INR 216 Cr, earning close to 5X return on its INR 20.40 per share acquisition cost.

The return for Tiger Global, which first invested in the company in August 2019, is more modest. The New York-based investor offloaded 2.94 Cr shares worth INR 303 Cr, marking 1.4X return on its INR 74.41 average acquisition price. 

Notably, Tiger Global offloaded some shares of Urban Company ahead of the IPO. It sold 3.14 Cr shares (2.14% stake) at INR 103 per share to SBI Mutual Fund and Acrobat Capital, raising over INR 3,227 Cr in August 2025. Following this deal, the investor’s stake in Urban Company declined to about 2%.

It must be highlighted that the aforementioned investors will continue to hold a significant number of shares in Urban Company post the listing.

Urban Company’s IPO closed on September 12 with an oversubscription of 103.63X. Investors bid for 1,106.45 Cr shares against 10.67 Cr shares on offer. 

The public issue comprised a fresh issue of INR 472 Cr and an OFS of INR 1,428 Cr. At the upper end of the price band, the IPO valued Urban Company at INR 14,790 Cr (about $1.6 Bn). 

The company plans to use the proceeds from the fresh issue for technology and product development, new market expansion, brand investments, and general corporate purposes.

Notably, Urban Company was a loss-making until recently, reporting a loss of INR 312.5 Cr in FY23 and INR 92.7 Cr in FY24. However, it turned profitable in FY25, posting a net profit of INR 240 Cr on an operating revenue of INR 1,144.5 Cr. It continued to be in the black in Q1 FY26, reporting a profit of INR 6.9 Cr. Revenue jumped 24% YoY to INR 367.3 Cr during the June quarter.