The Urban Company IPO will open on September 10, 2025, and close on September 12, 2025. This is a Book Built Issue, through which the company plans to raise around ₹1,900 crores. The issue comprises a fresh issue of ₹472 crores and an Offer for Sale (OFS) of up to 13,86,40,776 equity shares with a face value of ₹1 each.
The Urban Company IPO price band has been fixed at ₹98 to ₹103 per share. The retail investor quota is 10%, while Qualified Institutional Buyers (QIBs) have 75% reservation and High Net-Worth Individuals (HNIs) are allocated 15%. The IPO is proposed to list on both BSE and NSE with a tentative listing date of September 17, 2025. The allotment date is scheduled for September 15, 2025.
Urban Company Financial Performance
- Revenue: The company reported a revenue of ₹1,260.68 crores in FY 2025, compared to ₹927.99 crores in FY 2024, showcasing strong growth.
- Profit/Loss: Urban Company posted a profit of ₹239.77 crores in FY 2025, a remarkable turnaround from a loss of ₹92.77 crores in FY 2024.
Urban Company IPO Date & Price Band Details
The Urban Company IPO opens on September 10, 2025 and closes on September 12, 2025. With a price band of ₹98–₹103 per share, the issue size is ₹1,900 crores, including a fresh issue of ₹472 crores and OFS of 13.86 crore shares, listed on BSE & NSE.
| Category | Details |
|---|---|
| IPO Open Date | September 10, 2025 |
| IPO Close Date | September 12, 2025 |
| Face Value | ₹1 Per Equity Share |
| IPO Price Band | ₹98 to ₹103 Per Share |
| Issue Size | Approx ₹1900 Crores |
| Fresh Issue | Approx ₹472 Crores |
| Offer for Sale | Approx 13,86,40,776 Equity Shares |
| Lot Size | 145 Shares |
| Issue Type | Book Built Issue |
| IPO Listing | BSE & NSE |
| DRHP Draft Prospectus | Click Here |
| RHP Draft Prospectus | Click Here |
Urban Company IPO Market Lot
The Urban Company IPO lot size is 145 shares, requiring a minimum investment of ₹14,935 for retail investors. The retail maximum is 1,885 shares (₹1,94,155). For S-HNI, the minimum is 2,030 shares (₹2,09,090), while B-HNI applicants need at least 9,715 shares (₹10,00,645).
| Application | Lot Size | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 1 | 145 | ₹14,935 |
| Retail Maximum | 13 | 1,885 | ₹1,94,155 |
| S-HNI Minimum | 14 | 2,030 | ₹2,09,090 |
| B-HNI Minimum | 67 | 9,715 | ₹10,00,645 |
The subscription status will be updated after the bidding process begins on September 10, 2025.
Urban Company IPO Reservation
In the Urban Company IPO, the QIB quota is reserved at 75% of the net offer, while Non-Institutional Investors (NII/HNI) get 15%. The retail investor quota is limited to 10% of the net offer, ensuring strong institutional participation and limited retail allocation.
| Investor Category | Share Offered |
|---|---|
| QIB Shares Offered | 75% of the Net Offer |
| NII Shares Offered | 15% of the Net Offer |
| Retail Shares Offered | 10% of the Net Offer |
Urban Company IPO Anchor Investors
The Urban Company IPO anchor bidding date is September 9, 2025. The Anchor Investors List will be available in a PDF format. The anchor portion size is [.] Cr with [.] shares offered. The lock-in period ends on October 15, 2025 (50%) and December 14, 2025 (remaining 50%).
| Type | Details |
|---|---|
| Anchor Bidding Date | September 9, 2025 |
| Anchor Investors List | Click Here |
| Shares Offered | [.] Shares |
| Anchor Size | [.] Cr. |
| lock-in period end date 50% shares (30 Days) | October 15, 2025 |
| lock-in period end date 50% shares (90 Days) | December 14, 2025 |
Urban Company IPO Allotment & Listing Dates
The Urban Company IPO timeline begins with the open date on September 10, 2025, and close date on September 12, 2025 (5 PM cut-off). The basis of allotment is on September 15, refunds and Demat credit on September 16, while the IPO listing date is September 17, 2025 on BSE & NSE.
| Type | Date |
|---|---|
| IPO Open Date: | September 10, 2025 |
| IPO Close Date: | September 12, 2025 |
| Basis of Allotment: | September 15, 2025 |
| Refunds: | September 16, 2025 |
| Credit to Demat Account: | September 16, 2025 |
| IPO Listing Date: | September 17, 2025 |
| IPO Bidding Cut-off Time: | September 12, 2025 – 5 PM |
Urban Company IPO: Promoters and Holding Pattern
The promoters of Urban Company are Abhiraj Singh Bhal, Raghav Chandra, and Varun Khaitan. The promoter holding pre-issue stands at 1,39,00,53,450 shares (21.09%), while the post-issue holding is 1,43,58,78,692 shares (20.42%), reflecting slight dilution after the Urban Company IPO 2025.
| Particular | Shares | Share% |
|---|---|---|
| Promoter Holding Pre Issue | 1,39,00,53,450 | 21.09% |
| Promoter Holding Post Issue | 1,43,58,78,692 | 20.42% |
Objects of the Issue & Utilisation of proceeds – Urban Company IPO
The Urban Company IPO proceeds will be utilized across key areas: ₹190 crores (44.2%) for technology development & cloud infrastructure, ₹75 crores (15.88%) for office lease payments, ₹90 crores (19.06%) for marketing activities, and ₹117.1 crores (24.81%) for general corporate purposes, supporting long-term business growth.
| Purpose | Crores | Change% |
|---|---|---|
| Expenditure for new technology development and cloud infrastructure | 190 | 44.2% |
| Expenditure for lease payments for the offices | 75 | 15.88% |
| Expenditure towards marketing activities | 90 | 19.06% |
| General corporate purposes | 117.1 | 24.81% |
Urban Company IPO Company Financial Report
The Urban Company financials show strong growth. Revenue increased from ₹726.24 crores (2023) to ₹1,260.68 crores (2025). Losses of ₹312.48 crores (2023) and ₹92.77 crores (2024) turned into a profit of ₹239.77 crores in 2025. Total assets also rose to ₹2,200.64 crores, reflecting financial stability.
| Period Ended | Revenue | Expense | PAT | Assets |
|---|---|---|---|---|
| 2023 | ₹726.24 | ₹1,038.68 | ₹312.48 | ₹1,631.22 |
| 2024 | ₹927.99 | ₹1,020.72 | ₹92.77 | ₹1,638.65 |
| 2025 | ₹1,260.68 | ₹1,223.48 | ₹239.77 | ₹2,200.64 |
Urban Company IPO Valuation – FY2025
| KPI | Values |
|---|---|
| ROE: | -% |
| ROCE: | -% |
| EBITDA Margin: | -% |
| PAT Margin: | -% |
| Debt to equity ratio: | – |
| Earning Per Share (EPS): | ₹1.66 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 13.35% |
| Net Asset Value (NAV): | ₹12.46 |
Urban Company IPO Peer Group Comparison
- There are no listed companies.
Urban Company Overview, Strengths, and Risks
Urban Company, formerly known as UrbanClap, has established itself as a leading technology-driven platform connecting consumers with skilled professionals for a wide array of home and beauty services. Founded in 2014 by Abhiraj Singh Bhal, Varun Khaitan, and Raghav Chandra, the company has expanded its reach beyond India to markets in the UAE, Singapore, and Australia, with recent ventures into the United States and Saudi Arabia.
Key Strengths
- Strong Brand Recognition and Trust: Urban Company has cultivated a reputation for reliability, quality, and convenience. It is consistently ranked as a highly searched online home services brand in India, indicating strong consumer trust and preference.
- Extensive Service Portfolio: The platform offers a comprehensive range of services, spanning cleaning, plumbing, electrical work, appliance repair, beauty treatments, wellness therapies, and even branded products like water purifiers under its “Native” brand. This one-stop-shop approach enhances customer convenience and loyalty.
- Scalable Tech Platform: Urban Company leverages a unified technology stack for efficient matching of consumers with professionals based on availability, location, and skills. Real-time allocation and AI-driven forecasting optimize service delivery and facilitate rapid expansion.
- Focus on Quality Control and Professional Vetting: The company implements a rigorous onboarding and training process for its service professionals, ensuring standardized service quality. This commitment to quality is a significant differentiator in the often-unorganized home services sector.
- Empowered Service Professionals: Urban Company invests in training, tools, and support for its service professionals, often leading to higher earning potential compared to independent gig workers in other sectors. This focus on partner well-being contributes to a more stable and motivated professional network.
- Customer Loyalty and Repeat Usage: A significant portion of Urban Company’s revenue is driven by repeat customers, highlighting strong customer retention and loyalty. The company actively works to enhance customer lifetime value and maintain a lower customer acquisition cost.
- International Expansion: Successful ventures into international markets demonstrate the scalability and adaptability of Urban Company’s business model, opening up new avenues for growth.
Key Risks
- Financial Sustainability Challenges: While the company has shown revenue growth and a recent turn to profitability (FY25), it has historically incurred net losses and negative operating cash flows. Continued investment in growth and potential cost inefficiencies could pose challenges to long-term profitability.
- Intense Market Competition: Urban Company faces competition from both established offline service providers and other online platforms. The low penetration of online services in some markets and the emergence of new entrants could impact market share and pricing power.
- Service Professional Engagement and Retention: The platform’s success is heavily dependent on attracting and retaining skilled service professionals. High attrition rates, dissatisfaction among partners, or an inability to onboard sufficient talent could disrupt operations and impact service quality.
- Platform Disintermediation Risk: There is a risk that consumers and service professionals may bypass the platform to engage directly, thereby reducing transaction volumes and revenue for Urban Company.
- Brand and Trust Dependency: Urban Company’s reputation is a critical asset. Any negative incidents, service failures, or data breaches could erode consumer trust and adversely affect user growth and financial performance.
- Operational Risks and Oversight Challenges: The company is exposed to operational risks arising from the actions of employees, consumers, and service professionals. Managing a vast network of independent contractors and ensuring consistent service quality across diverse service categories and locations presents ongoing challenges.
- Reliance on Limited Service Categories: A substantial portion of revenue is derived from beauty and wellness services. A slowdown in demand within these key categories could hinder overall growth prospects.
- Geographic Concentration: A significant share of revenue is generated from a few top cities. Weaknesses in demand or regulatory shifts in these key regions could disproportionately impact the business.
- Valuation Concerns: With its upcoming IPO, there are concerns regarding the company’s valuation, which some analysts consider to be stretched compared to its earnings and market peers. This could impact investor sentiment and post-listing performance.
- Regulatory and Labor Law Uncertainty: As a platform relying on gig workers, Urban Company faces potential risks from evolving labor laws and regulations that could reclassify service professionals as employees, leading to additional obligations.
- Technology and Data Security Risks: As a tech-driven platform, Urban Company is vulnerable to cybersecurity threats, data privacy breaches, and system outages, which could damage its reputation and operational integrity.
Urban Company IPO Registrar
MUFG Intime India Pvt.Ltd.
Phone: +91-22-4918 6270
Email: urbancompany.ipo@in.mpms.mufg.com
Website: https://in.mpms.mufg.com
IPO Lead Managers aka Merchant Bankers
- Kotak Mahindra Capital Company Ltd. – A leading investment banking firm in India with extensive IPO management expertise.
- Morgan Stanley India Company Pvt. Ltd. – A globally renowned financial services provider with a strong presence in Indian equity markets.
- Goldman Sachs (India) Securities Pvt. Ltd. – One of the world’s top investment banks, offering deep market insights and strong investor connect.
- JM Financial Ltd. – A trusted Indian financial services group with a proven track record in managing public issues.
Urban Company Company Address
Urban Company Ltd.
Unit No. 8, Ground Floor,
Rectangle 1,
D-4 Saket District Centre
Delhi, New Delhi, 110017
Phone: +91 124 405 8254
Email: cs@urbancompany.com
Website: https://www.urbancompany.com/
FAQs about Urban Company IPO
The Urban Company IPO is a public offering to raise ₹1,900 crores. It consists of a fresh issue of ₹472 crores and an Offer for Sale (OFS) of shares worth ₹1,428 crores by existing shareholders.
The IPO will open for public subscription on September 10, 2025, and will close on September 12, 2025.
The company has set the price band at ₹98 to ₹103 per equity share.
The minimum application is for one lot, which consists of 145 shares. At the upper price band of ₹103, the minimum investment required is ₹14,935.
The shares are reserved as follows: 75% for QIBs, 15% for HNIs, and 10% for retail investors.
The basis of allotment is tentatively scheduled for September 15, 2025.
The shares are scheduled to be listed on both the BSE and NSE on September 17, 2025.
Urban Company reported a profit of ₹239.77 crores in FY 2025, marking a significant turnaround from a loss of ₹92.77 crores in FY 2024. Revenue also showed strong growth, rising to ₹1,260.68 crores in FY 2025 from ₹927.99 crores in FY 2024.
The IPO is being managed by Kotak Mahindra Capital, Morgan Stanley, Goldman Sachs, and JM Financial.
The proceeds from the fresh issue will be used for technology development and cloud infrastructure, office lease payments, marketing activities, and general corporate purposes.
Disclaimer: This content is provided strictly for educational and informational purposes only. The securities or investments mentioned are based on publicly available information and should not be construed as investment advice or recommendations. Investors are advised to consult with their financial advisor before making any investment decisions.
