Urban Company and boAt Get SEBI Approval for IPO

Home services marketplace Urban Company and the wearables brand boAt have been authorised by the Securities and Exchange Board of India (SEBI) to enter the public market. Urban Company, which submitted its draft red herring prospectus (DRHP) in April this year, aims to collect around Rs 1,900 crore through its initial public offering. This offering includes a fresh issue of shares valued at Rs 429 crore and an offer-for-sale (OFS) of Rs 1,471 crore from current shareholders.

The IPO of Urban Company is anticipated to provide exit opportunities for investors such as Accel, Elevation, Tiger Global, VY Capital, and others, while simultaneously infusing new capital into the company to enhance service quality and diversify offerings into additional categories. According to estimates from Startup Superb, Urban Company has secured over $450 million from a variety of investors including Tiger Global, Accel, Elevation Capital, and Dharana, among others.

boAt’s parent company, Imagine Marketing, opted for a confidential filing approach. With SEBI’s endorsement, the company can now proceed with its public listing, and reports suggest a goal of approximately $1.5 billion (around Rs 13,000 crore) in valuation. To date, boAt has raised over $170 million, which includes a $60 million funding round led by Warburg Pincus and Malabar Investments in 2023. Various sources indicate that Warburg Pincus stands as the largest external stakeholder, followed by Fireside Ventures and Qualcomm.

On the financial side, Urban Company has reported a 38% year-on-year growth in revenue, totalling Rs 1,144 crore in FY25, with profits amounting to Rs 28.5 crore. In contrast, boAt has yet to disclose its FY25 results. However, it recorded a revenue of Rs 3,122 crore for FY24. Recently, companies including WeWork, the edtech unicorn PhysicsWallah, and the digital investment platform Groww also acquired SEBI approval for their IPOs.