Introduction to Urban Company IPO
Urban Company, one of India’s most recognisable names in tech-enabled home and beauty services, is heading to the stock market. Founded in 2014, the Gurugram-based platform has built a reputation for bringing trained professionals to customers’ doorsteps for services like cleaning, plumbing, appliance repair, beauty treatments, and even massage therapy.
Now, in FY2025, Urban Company is all set for a ₹1,900 crore IPO. With its business model maturing, profitability finally kicking in, and growing investor curiosity, this IPO is drawing a lot of attention. Let’s break down what it means for you as an investor.
Why is Urban Company going public?
The IPO is structured to raise about ₹1,900 crore, split between a fresh issue of ₹472 crore and an offer for sale (OFS) of around 13.86 crore shares. The fresh funds are earmarked for technology upgrades, marketing, office lease payments, and general corporate needs.
But here’s the twist — most of the issue is an OFS, meaning existing investors like Accel, Tiger Global, Bessemer, and Elevation Capital will partially exit. This raises the question: should retail investors focus on the long-term story or worry about early backers cashing out?
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Financial snapshot of Urban Company
Urban Company has turned its financial tide recently. After recording losses in FY2024, the company reported a strong profit in FY2025.
| Year | Revenue (₹ Cr) | Expenses (₹ Cr) | PAT (₹ Cr) | Assets (₹ Cr) |
| 2023 | 726.24 | 1,038.68 | -312.48 | 1,631.22 |
| 2024 | 927.99 | 1,020.72 | -92.77 | 1,638.65 |
| 2025 | 1,260.68 | 1,223.48 | 239.77 | 2,200.64 |
The turnaround in FY2025 with ₹239.77 crore profit is a big positive. Still, the company’s DRHP admits risks like competition, talent retention, and sustaining profitability.
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Key details of the IPO
Here’s what investors need to know:
| Detail | Value |
| IPO Open Date | September 10, 2025 |
| IPO Close Date | September 12, 2025 |
| Price Band | ₹98 – ₹103 per share |
| Issue Size | ₹1,900 crore |
| Fresh Issue | ₹472 crore |
| Offer for Sale | 13.86 crore shares |
| Lot Size | 145 shares |
| Minimum Investment | ₹14,935 |
| Maximum Retail Application | 13 lots (₹1,94,155) |
| Listing Date | September 17, 2025 |
| Exchanges | BSE & NSE |
Shareholding pattern
| Particular | Shares | % Share |
| Promoter Holding Pre-Issue | 1,39,00,53,450 | 21.09% |
| Promoter Holding Post-Issue | 1,43,58,78,692 | 20.42% |
Promoters include Abhiraj Singh Bhal, Raghav Chandra, and Varun Khaitan.
Utilisation of IPOproceeds
Urban Company has outlined clear use of funds from the fresh issue:
| Purpose | Amount (₹ Cr) | % |
| New technology & cloud infra | 190 | 44.2% |
| Lease payments | 75 | 15.88% |
| Marketing activities | 90 | 19.06% |
| General corporate purposes | 117.1 | 24.81% |
Why should you consider investing?
The positives
- Strong brand presence in urban India with recall in home and beauty services.
- Revenue turnaround with FY2025 profits of ₹239.77 crore.
- Attractive price band at ₹98–103, compared with other tech IPOs.
- Growing sector — demand for organised home services is rising in metros and tier-2 cities.
- Anchor investors and institutional interest add credibility.
The concerns
- High OFS component (₹1,428 crore), meaning bulk of proceeds won’t go into company growth.
- Profitability risk — first year of profit after back-to-back losses.
- Heavy dependence on metros (90% of revenues from India).
- Competition from local service providers and aggregators.
- Grey Market Premium (GMP) signals excitement (~₹27–30 premium over IPO price), but GMPs are speculative and volatile.
Bottomline
Urban Company’s IPO is a significant milestone for India’s startup ecosystem in FY2025. With revenues up, profitability in sight, and a reasonable valuation, it presents an opportunity for long-term investors. However, the high OFS and sector uncertainties mean you should weigh your risk appetite before applying.
If you’re a retail investor looking for quick listing gains, the GMP suggests potential upside. But if you’re in it for the long haul, focus on Urban Company’s ability to sustain profitability and expand beyond metros.
