The Urban Company Draft Red Herring Prospectus (DRHP) throws up some interesting details as the doorstep home solutions company gets set for its IPO. In the last six months, the company founders and investors had collectively sold equity worth Rs 1395 crore.
Urban Company’s founders, Abhiraj Singh Bhal, Raghav Chandra, and Varun Khaitan, sold equities worth Rs 780 crore between September and March. Furthermore, the key investors in the company, Tiger Global, Accel, and Bessemer India, sold shares worth Rs 615 crore in the same period.
The major buyers of these equities are VY Capital, Prosus, Arohi Seed, and Dharana Capital.
In the proposed IPO, the early investors of Urban Company Axel India, VY Capital, and Bessemer India stand to hugely benefit. The investors would gain as much as Rs 1471 crore by selling their equity in the IPO.
The investors would receive different returns on their investment as they invested at different stages in the company. For example, Tiger Global invested at a later stage at a share price of Rs 60.25 while Excel India, which is among the earliest investors, received a share of the company at a price of Rs 3.61. The return on Accel India’s investment is 16.7 times higher than that of Tiger Global.
In its Rs 1900 crore IPO, Urban Company will raise a fresh issue of Rs 429 crore and offer for sale worth Rs 1471 crore. In its DHRP, the company said it will utilize the capital in marketing, capacity expansion, and technology innovation.
In the first three quarters of fiscal year 2025, Urban Company had Rs 930 crore in income. Additionally, the company posted a profit of Rs 27 crore in this period.