Urban Company’s Rs 1,900 Crore IPO: A Major Milestone

Urban Company’s IPO, valued at Rs 1,900 crore, signifies a landmark achievement for the home services marketplace based in Gurugram and promises significant returns for its early investors. At the maximum price band set at Rs 103 per share, Urban Company is valued at approximately Rs 15,000 crore (around $1.7 billion). This offers impressive returns for early backers and substantial liquidity for late-stage investment funds.

Major Stakeholders in Urban Company’s IPO

Elevation Capital retains the largest institutional stake at 10.84%, valued at around Rs 1,626 crore. With an average acquisition cost of Rs 5.39 per share, the fund enjoys a paper return of 19 times. Accel India follows with a 10.51% stake, worth Rs 1,576 crore, boasting an average cost of acquisition of just Rs 3.61 per share, resulting in an impressive 28 times return, according to the Draft Red Herring Prospectus (DRHP).

Vy Capital, which entered later with an acquisition cost of Rs 20.4, will also secure substantial gains. Its 9.18% stake equates to roughly Rs 1,377 crore, providing a fivefold return. Both Steadview Capital and Prosus hold stakes of 6.8% each, valued at approximately Rs 1,020 crore. While the entry costs for these firms are not disclosed in the DRHP, their significant holdings indicate strong returns on paper.

Tiger Global’s Modest Returns

In contrast, Tiger Global’s 4.73% stake is valued at around Rs 710 crore. However, with an average cost of entry of Rs 60.25 per share, this New York-based investor will see a return of only 70%, which is comparatively modest against the earlier investors.

Pre-IPO Secondary Deals

The forthcoming listing builds upon Rs 1,395 crore in pre-IPO secondary transactions completed between late 2024 and early 2025. Founders Abhiraj Singh Bhal, Varun Khaitan, and Raghav Chandra sold shares worth approximately Rs 780 crore mainly to clear debts from a 2019 partly-paid rights issue. Early investors like Accel, Bessemer, and Tiger Global also sold shares totaling Rs 615 crore to Prosus, Vy Capital, and others prior to the public offering.

Financial Performance Ahead of IPO

Urban Company has also secured approval from SEBI for its IPO earlier this week. On the financial side, the company registered a 38% year-on-year growth in revenue, reaching Rs 1,144 crore in FY25, alongside profits of Rs 28.5 crore. The IPO will comprise a fresh issue of Rs 429 crore and an offer for sale of Rs 1,471 crore, with promoters opting not to partake in the share sale. Urban Company’s market entry will be keenly anticipated as one of the pioneering large consumer internet listings for FY26.