Urban Company IPO Planned for 2023
Urban Company, a platform for home services, is gearing up for a significant initial public offering (IPO) this year. The company has taken an important step in this direction by officially converting into a public entity.
According to its regulatory filing, the board of OfBusiness has approved a resolution to transition into a public company and to change its name from “Urbancalp Technologies India Private Limited” to “Urbanclap Technologies India Limited.”
The goal of Urban Company is to raise Rs 3,000 crore, which is roughly $350 million, through its upcoming IPO. To facilitate this process, the company has engaged Kotak Mahindra Bank, Goldman Sachs, and Morgan Stanley as its lead managers.
It is anticipated that Urban Company will submit its draft IPO papers by the close of March.
In preparation for the IPO, Prosus is planning to boost its investment in the company. Reports indicate that Prosus is aiming to inject $30 million, or Rs 250 crore, in a secondary transaction, which will enable Bessemer Venture Partners to make a partial exit.
Urban Company, under the leadership of Abhiraj Bhal, completed its last ESOP liquidity programme in December 2021, achieving a valuation of $2.8 billion. The previous year, the startup also executed a new buyback at an estimated valuation ranging from $2.2 billion to $2.5 billion.
As per various sources from startup data intelligence platforms, Urban Company has successfully raised Rs 3,457.16 crore (over $450 million) from notable investors, including Tiger Global, Accel, Elevation Capital, and Dharana.
Urban Company operates in more than 60 cities throughout India, the UAE, Singapore, and Saudi Arabia, boasting a network of over 55,000 carefully selected service professionals.
For the fiscal year ending in March 2024, Urban Company’s operational revenue increased by 30% year-on-year, reaching Rs 827 crore, up from Rs 637 crore recorded in FY23. The Gurugram-based startup also reported a 70% reduction in losses, amounting to Rs 93 crore in the previous fiscal year.