Urban Company Gets Board Nod To Raise INR 528 Cr Via IPO

In the run up to its public listing, Urban Company’s board has approved raising up to INR 528 Cr (about $60 Mn) via a fresh issue in its IPO. The startup’s public issue will also comprise an undisclosed amount of offer-for-sale component.

According to the startup’s MCA filing, the board gave its nod for the IPO on March 7. The decision would be subject to the approval of the members of the company.

“The equity shares are proposed to be listed on the BSE, the NSE, and any other stock exchange as determined by the board at its absolute discretion and the company will be required to enter into listing agreements with each of the stock exchanges,” the filing read. 

The board meeting came a month after it was reported that the startup converted into a public entity. Back then, reports suggested that the startup was planning to file its draft papers for an INR 3,000 Cr IPO before the end of March. 

While much isn’t known about Urban Company’s IPO bid, it was said to have appointed Kotak Mahindra Capital, Goldman Sachs and Morgan Stanley as the investment bankers to helm the offering. 

Founded in 2014 by Abhiraj Singh Bhal, Raghav Chandra and Varun Khaitan, the startup offers at-home services like deep house cleaning, hairdressing and massage, appliance repair, among others. 

Recently, it also entered the quick commerce bandwagon with the launch of Insta Help to offer services in 15 minutes. Under it, the startup offers services such as utensil cleaning, brooming and mopping, cooking preparation, among others.

Urban Company has raised close to $700 Mn to date from investors like Tiger Global, Prosus, Kunal Bhal, Rohit Bansal, Steadview Capital, among others.

On the financial front, the startup claims to have seen a near 30% increase in its revenue to INR 827 Cr in FY24 and narrowed its loss before tax to INR 93 Cr. CEO Bhal claimed that Urban Company hit profit before tax in the first quarter of FY25. 

The Startup IPO Brigade

With the board approval, Urban Company has joined the long list of Indian startups which are looking to go public. It was reported earlier today that Wakefit has shortlisted bankers for its IPO, while Pine Labs completed its ‘ghar wapsi’ to further its listing plans. 

Besides, startup unicorns like Zepto, Infra.Market, Shiprocket, among others, are expected to file their draft red herring prospectus soon. 

Meanwhile, startups like BlueStone, Ather Energy, IndiQube have already received approvals for their IPO bids from markets regulator SEBI.