Urban Company, India’s leading tech-driven home and beauty services platform, has officially filed its draft red herring prospectus (DRHP) with SEBI to raise INR 1,900 crore through an initial public offering (IPO).
The move comes just weeks after the company secured board approval to raise INR 528 crore, and represents a strategic shift in fundraising amid ongoing market fluctuations.
The IPO will include a fresh issue of shares worth INR 429 crore, slightly lower than the earlier proposed amount, and an offer for sale (OFS) of shares worth INR 1,471 crore by existing investors. Venture capital heavyweights including Accel, Elevation Capital, Tiger Global, Bessemer India Capital Holdings, Internet Fund V, and VYC11 Ltd are among those offloading their stakes.
Urban Company plans to allocate INR 190 crore from the fresh issue toward the development of new technologies and enhancement of its cloud infrastructure. Additionally, INR 70 crore is earmarked for lease payments on office spaces, INR 80 crore for marketing activities, with the remaining funds going toward general corporate purposes.
The company’s decision to reduce the IPO size—from an earlier estimated INR 3,000 crore to INR 1,900 crore—mirrors a trend seen across India’s startup landscape as firms recalibrate public issue sizes in response to volatile equity markets and global economic uncertainty.
Notably, Ather Energy, which recently opened its IPO, also scaled down its fresh issue component by 15%.
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Founded in 2014, Urban Company operates a full-stack online marketplace that connects consumers with independent service professionals offering beauty, wellness, and home care services.
From pest control and appliance repair to haircuts and massages, the app-based platform has become a go-to solution for at-home services across 59 cities, including 48 in India and others in the UAE, Singapore, and Saudi Arabia.
On the financial front, Urban Company has shown strong improvement. The company turned profitable in the first nine months of FY25, posting a profit before tax of INR 27.1 crore, compared to a loss of INR 57.8 crore during the same period last year. After accounting for a deferred tax benefit of INR 215.5 crore, the company reported a net profit of INR 242.6 crore for the nine-month period, a sharp turnaround from a net loss in the previous year.
Revenue has also shown healthy growth. Operating revenue jumped 41% to INR 846 crore in 9M FY25, up from INR 601 crore year-on-year. For the full FY24, revenue rose 30% to INR 827 crore while losses narrowed dramatically by 70% to INR 92.77 crore from INR 312.48 crore in FY23.
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The IPO will be managed by top-tier investment banks including Kotak Mahindra Capital, Morgan Stanley India, Goldman Sachs India Securities, and JM Financial.
As Urban Company prepares to go public, its strong financial performance and sharpened focus on technology and expansion signal confidence in its next phase of growth—transforming how services are delivered at the doorstep in India and beyond.
