Urban Company is a tech-enabled, app-based platform offering a wide range of at-home services in beauty, wellness, and home maintenance. Founded by Abhiraj Singh Bhal, Varun Khaitan, and Raghav Chandra, the company connects consumers with verified service professionals for needs like plumbing, electrical repairs, cleaning, pest control, skincare, grooming, and more. As of December 2024, Urban Company operated in 59 cities, including 48 in India and others in countries such as the UAE, Singapore, and Saudi Arabia.
IPO Plan and Fundraising Details
Urban Company has filed a Draft Red Herring Prospectus (DRHP) with SEBI to launch its Initial Public Offering (IPO) worth ₹1,900 crore. ₹429 crore will be raised through the fresh issue of shares, and ₹1,471 crore will come through an Offer for Sale (OFS), where existing investors will sell part of their stakes. The IPO size has been reduced from an earlier plan of ₹3,000 crore.
Investors Offloading Stakes
Several major investors are participating in the OFS, including Accel India, Elevation Capital, Bessemer India Capital Holdings II Ltd, Internet Fund V Pte. Ltd, and VYC11 Ltd. The founders will not sell any shares in the IPO and will retain their collective 21% stake in the company.
Utilisation of Fresh Capital
The company plans to use ₹190 crore for new technology and cloud infrastructure development, ₹70 crore towards office lease payments, ₹80 crore for marketing initiatives, and the remaining funds for general corporate purposes.
IPO Lead Managers
The IPO will be managed by Kotak Mahindra Capital Company, Morgan Stanley India Company, Goldman Sachs (India) Securities, and JM Financial.
Urban Company formerly Urban Clap plans to raise ₹1900 crore through its IPO filing with SEBI aiming to fund platform innovation technology upgrades marketing and office expansion
