Urban Company Raises Capital for IPO

Urban Company, a marketplace for home services, has received the green light from shareholders to raise Rs 528 crore (around $60.6 million) in primary capital for its upcoming initial public offering (IPO). The board has approved this special resolution regarding the capital raise, as confirmed by a regulatory filing from the Registrar of Companies (RoC).

This significant move occurs shortly after Urban Company transformed into a public entity, changing its name from “Urbancalp Technologies India Private Limited” to “Urbanclap Technologies India Limited.” It was disclosed in February by Startup Superb.

Sources indicate that the firm, led by Abhiraj Bhal, is preparing to submit its draft red herring prospectus to the Securities and Exchange Board of India (SEBI) soon.

Urban Company has successfully accumulated over $450 million in funding to date, which includes a notable $255 million Series F round in 2021. Moreover, the Tiger Global-backed company secured a $63 million secondary round last year, achieving a valuation of $2.2 billion. Data from various startup intelligence platforms identifies Accel as the largest external investor, followed by VY Capital and Elevation.

Services Offered by Urban Company

Urban Company is dedicated to connecting adept and experienced professionals with clients in need of various at-home services. These services encompass repair work, painting, cleaning, pest control, home maintenance, as well as beauty and grooming treatments. The company operates in over 60 cities across India, the UAE, and Singapore, boasting a network of 55,000 service professionals.

Financial Performance of Urban Company

For the fiscal year concluding in March 2024, the Gurugram-based company reported a substantial 30% increase in operating revenue, reaching Rs 827 crore. Additionally, it achieved a remarkable reduction in losses by 70%, amounting to Rs 93 crore for the same timeframe.