Urban Company likely to file Draft Papers for Rs 3,000 Crore IPO by March End
Urban Company's IPO Plans
Urban Company, a hyperlocal service startup, reportedly plans to file draft papers for its Rs 3,000 Cr initial public offering (IPO) before the end of March. The company intends to offer both new and existing shares in this IPO. To manage the IPO process, Urban Company has appointed Kotak Mahindra Capital, Goldman Sachs, and Morgan Stanley. Additionally, ahead of the IPO, investor Prosus is planning to increase its investment in the company. Prosus is looking to invest $30 Mn (Rs 250 Cr) in a secondary deal, which will allow Bessemer Venture Partners to make a partial exit.
Financial Performance and Growth
Urban Company's consolidated revenue grew approximately 30% year-on-year in FY24, reaching Rs 827 crore. The company's loss before tax decreased from Rs 312 crore in FY23 to Rs 93 crore in FY24. In the first quarter of FY25, Urban Company recorded a consolidated revenue of Rs 281 crore, a 37.3% increase from the previous year, and a profit before tax of Rs 12 crore.
Company Overview
Founded in 2014 by Raghav Chandra, Abhiraj Singh Bhal, and Varun Khaitan, Urban Company is a technology marketplace for various home services. These services include beauty and spa, cleaning, plumbing, and appliance repair. The company has also expanded into branded home appliances, launching a line of water purifiers. Urban Company operates in over 50 Indian cities, as well as international locations like the UAE, Singapore, and Saudi Arabia. The company was last valued at $2.1 billion in June 2021.
Past IPO Plans and Board Strengthening
Urban Company had considered an IPO in 2021 but later suspended that plan. In 2022, the company appointed four independent directors—Ashish Gupta, Ireena Vittal, Deepinder Goyal, and Shyamal Mukherjee—to strengthen its board in preparation for a potential listing.
Investor Activity
Some of Urban Company’s early-stage investors plan to cash out ahead of the IPO. As per The Hindu, Dharana Capital purchased shares worth Rs 400 crore in Urban Company from its employees and other shareholders.
Additional Information
- Urban Company is also referred to as UrbanClap.
- The company has several investors, including Prosus, Tiger Global and Steadfast Capital.
- The company will raise mostly primary capital in the IPO.
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