Urban Company Founders Secondary Exit Ahead of IPO
Urban Company founders Abhiraj Singh Bhal, Varun Khaitan, and Raghav Chandra have achieved a notable secondary exit worth Rs 780 crore ($91 million) prior to the company’s initial public offering (IPO).
According to the draft red herring prospectus (DRHP), the founders collectively sold personal equity valued at Rs 780 crore between September 2024 and March 2025. During this same timeframe, investors Bessemer, Accel, and Tiger Global also made partial exits, offloading shares worth a total of Rs 615 crore.
Timeline of Sales
The secondary exit commenced in September 2024 with a cash sale of Rs 121 crore to VY Capital. In October, the founders sold shares amounting to Rs 124.5 crore to Prosus. By December of the previous year, they had divested an additional Rs 482 crore worth of equity to Prosus and Arohi Seed.
A further equity sale of Rs 50 crore occurred in January 2025 to Dharana Capital, which is a subsidiary of VY Capital. The final sale, amounting to Rs 1.8 crore, was executed with Sanjiv Rangrass, Sri Harsha Majety, and Venturesail LLP.
Investments from Other Investors
In addition to the founders’ sales, Bessemer, Accel, and Tiger Global sold stakes worth Rs 142 crore, Rs 194 crore, and Rs 84 crore respectively to Think Investments. Additionally, Bessemer performed a separate secondary sale valued at Rs 195 crore to Arohi Seed SPC ahead of the IPO.
Urban Company’s IPO Plans
Urban Company is aiming to raise Rs 1,900 crore through its initial public offering (IPO), which consists of a fresh issue of Rs 429 crore along with an offer for sale (OFS) worth Rs 1,471 crore. This OFS will include partial divestments from investors such as Accel, VY Capital, Prosus, Bessemer, and Elevation.
Company Performance Metrics
During the first nine months of FY25, Urban Company reported a total income of Rs 930 crore, reflecting a robust 37.8% year-on-year growth compared to the same period in the previous fiscal year. Notably, the company also achieved a profit of Rs 27.1 crore during this timeframe.