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2 min read | Updated on April 29, 2025, 08:44 IST
SUMMARY
Urban Company IPO: The net fresh issue proceeds will be utilised for new technology development and cloud infrastructure, marketing initiatives, and lease payments for its offices. A portion will also be utilised for corporate general purposes.
Urban Company provides a technology-driven, full-stack online marketplace for services and solutions across home and beauty categories. | Image: Shutterstock
Urban Company IPO: Mobile app-based beauty and home care services provider Urban Company has filed preliminary papers with the market regulator, the Securities and Exchange Board of India, to raise ₹1,900 crore via an initial public offering (IPO).
According to the draft red herring prospectus (DRHP), the proposed initial share sale is a fresh issuance of shares worth ₹429 crore and an offer for sale (OFS) component of ₹1,471 crore.
Under the OFS, Accel India, Elevation Capital, Internet Fund V Pte Ltd, VYC11 Ltd, and Bessemer India Capital Holdings II Ltd will offload their stake.
The net fresh issue proceeds will be utilised for new technology development and cloud infrastructure, marketing initiatives, and lease payments for its offices. A portion will also be utilised for corporate general purposes.
Urban Company provides a technology-driven, full-stack online marketplace for services and solutions across home and beauty categories. It operates in 59 cities across India, Singapore, the United Arab Emirates (UAE), and the Kingdom of Saudi Arabia as of December 2024.
Its app and website allow customers to order services such as pest control, cleaning, electrician, carpentry, plumbing, painting, skincare, appliance servicing and repair, massage therapy, and hair grooming.
The issue's book-running lead managers are Kotak Mahindra Capital Company, Goldman Sachs (India) Securities, Morgan Stanley India Company, and JM Financial.
On the financial front, the company had narrowed its loss from ₹312 crore in the financial year 2022-23 to ₹93 crore in FY24. It also posted its first-ever operational profit in the first quarter of FY25.
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