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Gurugram-based home service company Urban Company has reduced its IPO size to Rs 528 crore. Earlier, the company had planned to raise Rs 3000 crore through this IPO. But considering the current market situation, the company has taken this decision. It has been approved by the shareholders and by May 2025, the company is preparing to file DRHP with SEBI.
Urban Company is also planning a pre-IPO placement with select investors. If this happens, the IPO size may be smaller. Old investors will sell their shares in this offering. The valuation of the company is estimated to be between $2.5 and $2.8 billion.
Who is handling the IPO?
Kotak Mahindra Capital, Goldman Sachs and Morgan Stanley have been made the lead investment bankers of this issue.
What does Urban Company do in which sector? Urban Company is a tech-based platform that connects customers with trained professionals. Apart from India, it also operates in UAE, Singapore, Saudi Arabia and Australia. Its service segments include beauty and wellness, home cleaning, appliance repair, pest control, home decor and products like Native RO and smart locks. 30% growth in revenue, loss also reduced The company's total revenue in FY24 was Rs 827 crore, of which Rs 738 crore i.e. 90% came from India. The company registered a 30% growth in revenue compared to last year. While the loss was 312 crores in FY23, it reduced to 93 crores in FY24. Products like Native RO and wall panel have a strong hold In FY23, the company earned 496 crores (77.9%) from home services like cleaning and repair. At the same time, 141 crores (22.1%) were received from products like Native RO. In the first quarter of FY25, an annual revenue run rate of 96 crores has been achieved from Native RO alone. New categories like wall panel have also received tremendous response and more than 1 lakh installations have been done so far. Now focusing on services like sustainable decor and Insta Maids Urban Company has diversified itself in the past years. The company is now focusing on sustainable home decor and quick-commerce cleaning services like Insta Maids. The details of the works in which the money raised from the IPO will be used will be available in DRHP, but the priority of the company is to invest in scaling and technology.
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