Urban Company IPO: 5 Key Things You Need To Know About Rs 1,900 Crore Public Issue

Urban Company, a prominent online marketplace offering home and beauty services, is all set to launch its Initial Public Offering (IPO), aiming to raise Rs 1,900 crore.

The company has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India ( SEBI ), outlining the details of the offering.

Here are 5 key facts about Urban Company’s IPO:

IPO Size and Structure

Urban Company is looking to raise Rs 1,900 crore through its IPO. Of this, Rs 429 crore will come from a fresh issue of shares, while the remaining Rs 1,471 crore will be raised through the sale of shares by existing shareholders.

Additionally, there will be a pre-IPO placement of Rs 85.8 crore, which is part of the offering.

Planned Use of Proceeds

The company has outlined how it plans to use the funds raised. A significant portion of the proceeds, Rs 190 crore, will be invested in developing new technology and cloud infrastructure.

This will be deployed over the next few years—Rs 42 crore in FY2026, Rs 74 crore in FY2027, and Rs 74 crore in FY2028. Urban Company also plans to use Rs 70 crore for office lease payments and Rs 80 crore for marketing activities.

Turnaround to Profitability

Urban Company has turned profitable in recent months. For the nine months ending December 31, 2024, it reported a pre-tax profit of Rs 27.2 crore, compared to a pre-tax loss of Rs 57.8 crore during the same period the previous year.

This marks a significant improvement in its financial performance, along with a boost in revenue, which increased from Rs 600 crore to Rs 846 crore year-on-year.

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Growth in Services and International Markets

Cleaning and pest control services were among the fastest-growing categories on Urban Company’s platform. As of December 31, 2024, around 13.8% of the company’s revenue came from international markets, particularly from Singapore, the UAE, and Saudi Arabia, where Urban Company has expanded its presence.

Urban Company Profile

Urban Company operates a technology-driven, full-stack online marketplace for quality-driven services and solutions across various home and beauty categories. It is present in 59 cities across India, United Arab Emirates, Singapore, and Kingdom of Saudi Arabia, of which 48 cities are in India, as of December 31, 2024.

Its platform enables consumers to order services, including cleaning, pest control, electrician, plumbing, carpentry, appliance servicing and repair, painting, skincare, hair grooming and massage therapy. These services are delivered by independent service professionals at the consumers' convenience.