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Urban Company IPO
Urban Company Ltd
₹14,210 /145 sharesMinimum Investment
Urban Company IPO Details
| Bidding Dates | Min. Investment | Lot Size | Price Range |
|---|---|---|---|
| 10 Sep ‘25 - 12 Sep ‘25 | ₹14,210 | 145 | ₹98 - ₹103 |
| Issue Size | IPO Doc |
|---|---|
| 1900.00Cr | RHP PDF |
Subscription rate
As of 12 Sep'25, 04:01 PM
| Qualified Institutional Buyers | 124.02x |
| Non-Institutional Investor | 73.34x |
| Retail Individual Investor | 36.69x |
| Employees | 33.69x |
| Total | 94.16x |
About Urban Company
Founded in
2014
Managing director
Mr Abhiraj Singh Bhal
Parent organisation
Urban Company Ltd
Urban Company Ltd IPO
https://www.youtube.com/watch?v=7q65ZeEtBC8
Strengths & Financials of Urban Company
Strengths
Risks
The company operates its platform at a hyperlocal level to minimise travel distances for service professionals. The platform divides each city into multiple micro-markets, with a typical radius of 3-5 km, though this varies by service category. As of June 30, 2025, the company claimed to have over 12,000 service micro-markets across various cities. When introducing new service categories in a micro-market, the company focuses on quality and reliability, increasing market penetration. The company also claims that service professionals earn 30-40 percent more than their peers who are not on the platform.
As of June 30, 2025, the company claimed to have facilitated transactions for 14.59 million unique consumers across all geographies where it operates. It also claims to have onboarded 6.81 million unique consumers, representing 46.67 percent of the total consumers between July 1, 2022, and June 30, 2025.
Urban Company claims to provide in-house training programs for service professionals, which familiarise them with service standards, tools, consumables, and the platform’s technology. As of June 30, 2025, the company claimed to have over 247 dedicated training classrooms in 17 cities across India. Service professionals undergo training and are provided with feedback to continuously improve. Additionally, the company claims to supply service professionals with high-quality tools and consumables, either under its own brand names or through exclusive arrangements with other brands. These products are delivered directly to the doorsteps of the service professionals.
The company has a technology-driven model embedded across all its business operations, allowing it to scale its services effectively. As the company gains new insights in specific service categories and geographies, it applies these learnings across its operations, creating a unified technology stack. The company claims that this strategy helps to launch new services quickly, reduce time-to-market for pilot projects, and maintain quality control across various regions.
The company has witnessed a consistent increase in the number of annual transacting consumers, with the number rising from 0.48 crore in FY23 to 0.56 crore in FY24, 0.65 crore in FY25, and 0.68 crore in the three months ended June 30, 2025. The company has also seen a corresponding rise in consumer spending on the platform. The services spent per consumer increased from Rs 3,786 in FY23 to Rs 3,959 in FY24 and Rs 4,079 in FY25.
The company has witnessed a consistent increase in revenue from operations. It increased from Rs 636.60 crore in FY23 to Rs 828.02 crore in FY24 and Rs 1,144.46 crore in FY25.
The company has experienced negative cash flow from operating activities, amounting to Rs 237.80 crore in FY23 and Rs 85.57 crore in FY24. This was primarily driven by high investments in new services, technology, and infrastructure, including the launch of InstaHelp and the development of new product offerings. The company's cash burn is also attributed to incentives, discounts, and service professional onboarding expenses that outpaced revenue generation. If it fails to achieve sufficient revenue growth or manage operating expenses effectively, the company may face significant liquidity challenges, adversely impacting its ability to continue operations and meet financial obligations.
The company has a limited operating history in several of its newer business lines, including products under the ‘Native’ brand, small home project offerings, wall panel services, and cleaning subscription services. For instance, the launch of water purifiers and electronic door locks under the ‘Native’ brand and the InstaHelp offering are still in early stages, making it difficult to assess their long-term financial viability. As a result, investors may find it challenging to evaluate the company’s future performance based on its past growth, which may not be indicative of future results. The evolving business model and the potential for rapid changes in consumer preferences could further complicate assessments, which may negatively impact the company’s financial condition and operations.
Urban Company has recorded deferred tax assets (net) of Rs 211.86 crore as of June 30, 2025. These assets, which arise from brought-forward business losses, unabsorbed depreciation, and other timing differences, are dependent on the company’s ability to generate sufficient taxable profits in the future. If the company fails to achieve or maintain profitability, it may need to reverse the recognition of these deferred tax assets, leading to a corresponding charge in its profit and loss statement.
The company relies on third-party financial institutions for its payment processing infrastructure. Online payments accounted for Rs 702.98 crore (73.88 percent) of the company’s total payments made by consumers in the three months ended June 30, 2025; Rs 2,211.27 crore (70.98 percent) in FY25; Rs 1,632.85 crore (64.64 percent) in FY24; and Rs 1,290.56 crore (62.24 percent) in FY23. Any disruption in these services, such as increased fees from payment providers or a failure to provide services on acceptable terms, could significantly impact the company’s operations. If such issues arise, it could cause a loss of consumer and service professional trust, adversely affecting the company’s business and financial condition.
As of June 30, 2025, the company had trade receivables of Rs 19.7 crore. Any failure to collect payments from consumers, service professionals, or third-party e-commerce partners could significantly impact working capital and cash flows. This could negatively affect the company’s business operations and financial health.
Employee benefits expenses accounted for 27.02 percent of the company’s revenue for the three months ended June 30, 2025, 30.59 percent in FY25, 41.64 percent in FY24, and 59.23 percent in FY23. Any significant increase in these expenses could negatively affect the company’s financial condition and results of operations, especially considering the competitive market for talent.
The attrition rate for full-time employees stood at 7.12 percent in the three months ended June 30, 2025, 42.93 percent in FY25, 39.68 percent in FY24, and 52.24 percent in FY23, reflecting an ongoing challenge in retaining staff. High turnover can lead to increased recruitment and training costs, disrupt operations, and decrease productivity, thereby adversely affecting business performance and financial stability.
The company operates in a heavily regulated environment and must comply with a range of laws and regulations. These include consumer protection, data privacy, labour laws, GST, and foreign investment regulations. Any failure to comply with these regulations could lead to fines, penalties, or legal action, which could affect the company’s reputation and bottom line.
The company, its subsidiaries, promoters, directors, and key managerial personnel are involved in several ongoing litigations, including criminal, tax, regulatory, and civil lawsuits. Any adverse rulings or penalties in these proceedings could result in financial liabilities and harm to the company's reputation.
Some segments of Urban Company’s business are impacted by seasonality, with higher demand for summer service categories in the first quarter and house cleaning during the festive season. Any inability to address this fluctuation in demand could adversely affect its business and financial condition.
The company had contingent liabilities amounting to Rs 43.78 crore as of June 30, 2025. The company’s business model requires large inflows of funds from private equity and other large financial sector players. Investors should keep an eye on the company’s road to profitability.
Urban Company Financials
*All values are in Rs. Cr
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Application Details of Urban Company IPO
| Apply as | Price band | Apply upto |
|---|---|---|
| Regular | ₹98 - 103 | ₹2 Lakh |
| Employee | ₹89 - 94 | ₹2 Lakh |
| High Networth Individual | ₹98 - 103 | ₹2 - 5 Lakh |
For Urban Company IPO, eligible investors can apply as Regular & Employee.