Urban Company IPO: INR 854 Cr Raised From Anchor Investors

SUMMARY

The company allocated 8.29 Cr equity shares to 59 anchor investors, including Goldman Sachs, Nippon India, ICICI Prudential, HDFC Mutual Fund, among others

The company allotted the shares at INR 103 each, which is the upper end of the company’s IPO price band

Of the 8.29 Cr shares, 3.06 Cr shares (or 36.96%% of the total allocation) were allocated to 13 domestic mutual funds through a total of 29 schemes

Ahead of the commencement of the bidding for its public issue on September 10, hyperlocal services unicorn Urban Company has raised INR 853.9 Cr from anchor investors.

The company allocated 8.29 Cr equity shares to 59 anchor investors, including Goldman Sachs, Nippon India, ICICI Prudential, HDFC Mutual Fund, Aditya Birla Sun Life Trustee, Steadview Capital, Florida Retirement System, Motilal Oswal, among others.

The company allotted the shares at INR 103 each, which is the upper end of the IPO price band.

Of the 8.29 Cr shares, 3.06 Cr shares (or 36.96%% of the total allocation) were allocated to 13 domestic mutual funds through a total of 29 schemes.

“The board of directors of the company… have finalised allocation of 8,29,00,485 equity shares to anchor investors at the anchor investor allocation price of INR 103/- per equity share (including share premium of INR 102/- per equity share)…,” company said in a filing with the BSE.

Urban Company’s public issue will close on September 12. As per its red herring prospectus (RHP), the company’s public issue will comprise a fresh issue of shares worth INR 472 Cr and an OFS component of up to INR 1,428 Cr.

The OFS component will see participation from investors like Accel, Elevation Capital, Tiger Global and others. However, cofounders and promoters – Abhiraj Bhal, Varun Khaitan and Raghav Chandra – will not sell any stake via the OFS.

The on-demand services marketplace has set a price range of INR 98 to INR 103 per share for its upcoming IPO. At the upper end of the spectrum, Urban Company is targeting a valuation of about INR 14,000 Cr.

Urban Company plans to utilise the proceeds from the IPO to bolster its tech stack, make lease payments for its offices, shore up marketing activities and for general corporate purposes.

The company’s shares are expected to list on the BSE and the NSE on September 17.

Founded in 2014, Urban Company began as a full-stack online marketplace connecting service professionals with individuals. In 2023, the company also forayed into the consumer electronics segment by launching its native line of products such as water purifiers.

On the financial front, the startup turned profitable in FY25 and reported a net profit of INR 239.7 Cr during the fiscal year under review as against a loss of INR 92.7 Cr in FY24. Its operating revenue jumped 38.2% to INR 1,144.4 Cr from INR 828 Cr in FY24.

Meanwhile, in Q1 FY26, the hyperlocal services platform’s net profit slid 45% YoY to INR 6.9 Cr while operating revenue rose 24% YoY to INR 367.3 Cr.