Starting from facials at your doorstep to fixing your faucet, Urban Company has quietly become a known name for many Indian homes. Now, the tech-enabled home services giant is preparing for a major update, ‘a stock market debut’.
It has filed its Draft Red Herring Prospectus (DRHP) for a Rs 1,900 crore IPO, indicating about its formal entry into India’s public markets.
Let’s take a look at the five important things to know about this upcoming IPO, from who’s selling shares to how the company plans to use the funds.
Urban Company IPO: What is in the Rs 1,900 crore IPO?
Urban Company’s public issue is split into two parts. A fresh issue of shares worth Rs 429 crore and an Offer for Sale (OFS) of Rs 1,471 crore by early investors
The OFS route means existing investors like Accel, Elevation Capital, Tiger Global, Vy Capital, and Bessemer will sell a part of their stake. Meanwhile, the company will get new capital from the fresh issue to fund future plans.
Urban Company IPO: Where will the fresh money go?
Urban Company is not raising funds just for the sake of it. It has earmarked the Rs 429 crore for specific goals which means that Rs 190 crore will go into building new technologies and cloud infrastructure. Furthermore it notes that, the rest will be used for office leases and marketing activities to attract more users and expand operations
Urban Company IPO: Founders stay put, investors exit partially
The founding trio, that is, Abhiraj Singh Bhal, Varun Khaitan, and Raghav Chandra who together hold about 21% of the company, are not selling any of their shares.
However, some of the big-name investors are cashing in which include Accel plans to sell shares worth Rs 433 crore, Elevation Capital will offload Rs 346 crore. Similarly, Tiger Global and Vy Capital are selling Rs 303 crore and Rs 216 crore respectively, and Bessemer will exit Rs 173 crore worth of its stake.
Urban Company IPO: From early bets to bumper returns
Urban Company, a startup company to an IPO ready business has rewarded early investors. For example, Titan Capital, which invested just Rs 57 lakh in the company’s early days, secured nearly 200 times return through recent secondary deals. In one such pre-IPO transaction, Dharana Capital bought shares worth $50 million from early backers and employees at a valuation of $1.8 billion.
Urban Company IPO: Financial health of the company
The company is not just raising funds on the back of a well known name. It now has strong numbers as well such as Rs 846 crore in operating revenue during the first nine months of FY25 and Rs 242 crore in net profit, a big turnaround from a Rs 58 crore loss during April-December 2023.