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Urban Company IPO: If you want to earn money by investing in the initial public offering (IPO), then this news is for you. Actually, the IPO of a company in the home services sector is going to be launched. This IPO home services startup is of the urban company. The company has received approval from its board of directors to raise new capital of Rs 528 crore (about $ 60 million) through an IPO. Now the company will soon file its draft Red Herring Prospectus (DRHP) near the market regulator SEBI.
Earlier this year, Excel -backed company planned to file a draft letter for a possible IPO of Rs 3,000 crore. However, its current target size is less than 80 percent. Now sources have shown that the size of the IPO has been reduced due to unstable market conditions. According to the information received, Kotak Mahindra Capital, Goldman Sachs and Morgan Stanley have been selected for the management of IPO.
Stress increased due to market environment
In 2024, 13 startups were listed. This number is expected to increase significantly in 2025. This year, more than 25 startups were ready for IPOs. However, the mood has changed due to unstable market conditions due to the American tariff war. Now many companies may have to revaluate their listing plans.
The urban company has raised funding up to $ 376 million in 12 rounds. Its final assessment was $ 2.5 billion. The company last raised huge funds in 2021 when it raised $ 255 million led by investors such as Prose, Dragonier and Wellington Management.
The presence of domestic services and beauty salon market is in more than 30 cities in India. It also works in foreign markets including Singapore and Saudi Arabia. This platform connects Gig workers with domestic services and receives an average of 2.2 million orders per month. The urban company claims to work with 57,000 partners.
Company’s financial performance
The revenue (topline) of the Urban Company in 2024 was ₹ 827 crore, which was 30% more than the previous year. The company’s deficit has reduced to ₹ 93 crore in 2023 as compared to ₹ 312 crore.
Last month, the urban company launched the Insta Help Service, which was its first step in the fast -paced commerce sector. This service is currently available in some areas of Mumbai.
In July 2023, Venture Capital firm Dharna bought shares worth ₹ 400 crore from Urban Company employees and other shareholders. This was the largest ESOP liquidity deal in the history of the Urban Company.
The Urban Company has the support of prominent companies like Elives, Excel and Prose. Now after the IPO, the company is preparing to make its mark in the open market.