Explore Urban Company’s ₹1,900 cr IPO — pricing, issue structure, timeline, GMP, financials, risks & outlook

Incorporated in December 2014, Urban Company Ltd. has grown into India’s largest technology-driven, full-stack online marketplace for home and beauty services. With its seamless app and website interface, the platform connects millions of consumers to trained and verified service professionals—making household services more accessible, reliable, and organized.

Business Overview

Urban Company operates a multi-category, hyperlocal marketplace, offering a wide range of services:

Home Services – cleaning, plumbing, electrical work, and appliance repair

Beauty & Wellness – at-home beauty treatments, salon services, grooming, and massage therapy
Smart Home Solutions – through its in-house brand Native, offering water purifiers, electronic door locks, and other innovative home products

The company’s unique value proposition lies in its end-to-end model—it not only connects consumers with professionals but also trains, equips, and supports service providers with tools, financing, insurance, and branding.

Geographic Presence

As of June 30, 2025, Urban Company has operations across:

51 cities in India
International markets including UAE and Singapore
Additionally, the company has expanded into the Kingdom of Saudi Arabia via a joint venture
Together, its services span over 12,000 micro-markets, ensuring strong hyperlocal penetration.

Scale of Operations

In the three months ended June 30, 2025, Urban Company hosted 54,347 average monthly active service professionals (a professional who delivered at least one service in a month).
Its network effect ensures that as more professionals join, the range of services and availability for consumers improves, attracting even more demand.

Revenue Streams

  • Urban Company generates revenue from three key channels:
  • Platform Services for Consumers – enabling bookings through its app/website.
  • Sales of Products to Service Professionals – including tools, consumables, and kits required for service delivery.
  • Native Product Line – branded home products sold directly to consumers.

Market Opportunity

The Indian home services market was valued at USD 59.2 billion in 2024 and is projected to reach USD 97.4 billion by 2029. Despite its size, online penetration remains below 1%, showcasing massive untapped growth potential for platforms like Urban Company.

With its proven model, strong brand, and expansion beyond India, the company is well-positioned to capitalize on this growth.

Competitive Strengths

Urban Company’s rapid success is built on the following strengths:

  1. Multi-category hyperlocal marketplace – offers a wide range of services under one platform.
  2. Established brand – trusted by millions of Indian households and international users.
  3. Enhanced professional quality – in-house training, verified professionals, and access to tools and consumables.
  4. Technology-first approach – a robust platform powering service fulfillment, consumer engagement, and professional empowerment.
  5. Network effects – the more professionals and consumers on the platform, the stronger and more efficient the ecosystem becomes.

1. IPO Overview & Timeline

  • The IPO opens for public subscription from September 10 to September 12, 2025, with anchor investor bidding scheduled for September 9, 2025.
  • Share allotment is expected by September 15, and the company is slated to list on the BSE and NSE on September 17, 2025.

2. Issue Size & Pricing Structure

  • Total issue size is ₹1,900 crore, divided into:
  • Fresh issue of ₹472 crore (~4.58 crore shares)
  • Offer-for-sale (OFS) totalling ₹1,428 crore (~13.86 crore shares) by existing investors including Accel India, Elevation Capital, Bessemer, Internet Fund, VYC11, Tiger Global, etc.
  • The price band is fixed at ₹98–₹103 per share, valuing the business at a market cap of up to ₹14,800–₹14,900 crore at the upper band.

3. Lot Sizes & Investor Demography

  1. Minimum lot size: 145 shares, meaning a retail investor needs to invest about ₹14,935 at the ₹103 upper band.
  2. Minimum investments by investor category:
  3. Retail: 1 lot (~₹14,935)
  4. Small NII: 14 lots (~₹2.09 lakh)
  5. Big NII: 67 lots (~₹10 lakh)
  6. The allocation ratio is:
  7. 75% for QIBs
  8. 15% for NIIs
  9. 10% for Retail investors

4. Proceeds Allocation (Fresh Issue of ₹472 Cr)

Urban Company outlined the use of fresh capital as follows:

  1. ₹190 crore: Technology development & cloud infrastructure (multi-category checkout, recommendation systems, expanding Native products with IoT-enabled devices)
  2. ₹70 crore: Office lease rentals
  3. ₹80 crore: Marketing and brand promotion
  4. Remaining amount: General corporate purposes across fiscal years 2026–2028

5. Financial Performance Highlights

  1. FY2024–25: Revenue surged 38% to ₹1,144–1,260 crore, compared to ₹828–928 crore in FY24.
  2. Net Profit: ₹239–240 crore, turning around from losses of ₹93 crore in FY24. Pre-tax profits stood at ₹28 crore (after considering deferred tax credits).
  3. Q1 FY26 (three months ended June 30, 2025): Revenue of ₹367.3 crore and PAT of ₹6.9 crore.

6. Grey Market Premium (GMP) & Market Sentiment

GMP has more than doubled, going from around ₹10 to ₹28 in just six days—a possible indication of a 27% listing gain potential at the ₹103 band.

  • 7. Risks & Watchouts (from the RHP)

  1. Gig-worker dependency — Platform success tied to retention and onboarding of service professionals.
  2. Regulatory uncertainties — Changes in labor laws and gig economy regulation may reduce flexibility or increase compliance costs.
  3. Platform circumvention risk — Consumers and practitioners bypassing the platform could hurt revenues.
  4. Tech & data security vulnerabilities — Outages, breaches, and AI integration failures may undermine trust and disrupt service delivery.

8. Analyst Outlook

Analysts see significant expansion potential given Urban Company’s hyperlocal footprint, technology backbone, and diversification via Native and international verticals.

At 12.9x Price/Sales, the IPO is considered attractive for listing gains and long-term growth opportunities.


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