Urban Company IPO, an online home-service marketplace company, will open for bidding on September 10 and close on September 12, 2025. Urban Company (incorporated in December 2014) is a technology-driven, full-stack online marketplace offering a wide range of home and beauty services such as cleaning, skincare, massages, and pest control.
In this blog, we’ve covered all the Urban Company IPO details, its business areas, financial performance, and key risk factors.
Urban Company IPO Date
The key pointers for the Urban Company IPO dates are:
- Bidding Opening Date: September 10, 2025
- Bidding Closing Date: September 12, 2025
- Allotment Date: September 15, 2025
- Initiation of Refunds (in case of less or no allotment): September 16, 2025
- Shares Credited to Your Demat Account: September 16, 2025
- IPO Listing Date: September 17, 2025
- Listing on Exchange: BSE and NSE
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Urban Company IPO Issue Size
Urban Company IPO valuation, as denoted by the market capitalization, stood at ₹14,789.55 crores. Here are the important details:
- Urban Company IPO Price Band: ₹98 to ₹103 per share
- Lot Size: 145 Shares
- Issue Size and Amount: 18.45 crore shares (aggregating up to ₹1,900 crores)
- Fresh Issue: 4.58 crore shares (aggregating up to ₹472 crores)
- Offer for Sale: 13.86 crore shares of ₹1 (aggregating up to ₹1,428 crores)
- Face Value: ₹1 per share
Urban Company IPO Proceeds Usage
The net proceeds from the Urban Company IPO are proposed to be utilised for the following purposes:
- Investment in new technology development and strengthening cloud infrastructure – ₹190 crores
- Lease payments for office spaces – ₹75 crores
- Marketing and promotional activities – ₹90 crores
- General corporate purposes – balance proceeds
Urban Company IPO Reservations
Urban Company IPO reservations to different investors are:
- For QIBs: Not less than 75% of the Net Offer
- For NIIs: Not more than 15% of the Net Offer
- For Retail Investors: Not more than 10% of the Net Offer
Urban Company IPO Lot Size
Urban Company IPO lot size is 145 shares, wherein bidding can be done in multiples. The minimum amount that each category of investor needs to bid in this IPO is:
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 145 | ₹14,935 |
| S-HNI (Min) | 14 | 2,030 | ₹2,09,090 |
| B-HNI (Min) | 67 | 9,715 | ₹10,00,645 |
Urban Company IPO Details: Promoter Holding
The promoters of the company are Abhiraj Singh Bhal, Raghav Chandra, and Varun Khaitan.
Accel India IV (Mauritius) Limited, Bessemer India Capital Holdings II Ltd., Elevation Capital V Limited, Internet Fund V Pte. Ltd., and VYC11 Limited are the selling shareholders in the Urban Company IPO.
Urban Company Limited: Company Overview
Urban Company, incorporated in December 2014, is a technology-led, full-stack marketplace that connects consumers with a wide range of home and beauty services. Operating across 51 cities in India, UAE, and Singapore, along with a joint venture in Saudi Arabia, the company has built a strong presence in the urban services space.
Its platform allows users to book services such as cleaning, plumbing, electrical work, appliance repairs, beauty treatments, and massage therapy, all delivered by trained and background-verified professionals.
Beyond services, the company has expanded into home solutions with its own brand, Native, offering products like water purifiers and smart door locks. To support its professionals, Urban Company provides training, tools, financing, insurance, and branding opportunities, improving both service standards and earning potential.
In the quarter ending June 2025, the platform had around 54,347 average monthly active service professionals and 70.2 lakhs annual transacting customers. Revenue is generated through consumer platform services, sales of tools and consumables to professionals, and direct sales of Native-branded products.
In FY25, India’s home services market is valued at ₹5,100 – 5,210 billion and is expected to grow at a CAGR of 10 – 11%, reaching ₹8,400 – 8,580 billion by FY30. This is driven by the growth of organized players, rising urbanization, and increasing income levels.
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- 20 Lac+ unique clients
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Urban Company Limited: Financial Performance
Urban Company Limited’s financials and operating indicators for different periods are as follows:
| Particulars (in ₹ Cr) | FY25 | FY24 | YoY Change |
|---|---|---|---|
| Revenue from operations | 1,144 | 828 | 38% |
| Adjusted EBITDA | 12 | -119 | 110% |
| Profit after tax | 240 | -93 | 358% |
| Net Transaction Value | 3,271 | 2,564 | 28% |
| Annual transacting consumers (in lakhs) | 67.8 | 57.5 | 10.3 |
| Average monthly active service professionals (No.) | 47,833 | 46,012 | 1,821 |
| Contribution margin | 19.53% | 18.81% | 0.72% |
- Urban Company’s revenue from operations grew from ₹828 crores in FY24 to ₹1,144 crores in FY25, showing strong business growth.
- Adjusted EBITDA, which reflects core operating profit before taxes and depreciation, improved from a loss of ₹119 crores in FY24 to a positive ₹12 crores in FY25.
- The company made a significant turnaround from the loss of ₹93 crores in FY24 to a profit of ₹240 crores in FY25.
- Net Transaction Value, the total value of all transactions on the platform, increased by 28% YoY to ₹3,271 crores in FY25, driven by higher consumer spending.
- Annual transacting consumers, which shows the number of unique customers who used the platform in a year, rose from 57.5 lakh in FY24 to 67.8 lakh in FY25.
- Average monthly active service professionals grew from 46,012 in FY24 to 47,833 in FY25, an addition of 1,821 professionals.
- Contribution margin (contribution profit as a % of Net Transaction Value) improved from 18.81% in FY24 to 19.53% in FY25.
Urban Company IPO Risk Factors
Urban Company IPO GMP is ₹20 as of September 6, 2025 (at 9:36 AM). It is expected to list at a 19.42% gain at a price of ₹123. However, GMP is not a safe or assured criterion to bid for an IPO. It is important to do your own analysis before investing in IPO.
Urban Company IPO is exposed to various risk factors that can eventually affect its business and investors’ perception:
- Losses and Cash Flow Concerns: The company has reported net losses and negative operating cash flows in the past. Unless revenue growth continues at a strong pace alongside improved cost-efficiency, sustaining positive cash flows and profitability could remain a challenge.
- Customer Satisfaction: The platform’s success depends heavily on customer satisfaction. If users are not provided with a smooth and reliable experience, it could hurt the company’s reputation and slow down future growth.
- Competition and Market Penetration: Urban Company operates in a highly competitive environment, facing pressure from traditional offline players as well as emerging online rivals. The online penetration of home services is still low, which may limit demand and reduce professional sign-ups.
- Challenges of Managing Growth: With rapid expansion comes the challenge of maintaining operational efficiency. If the company fails to effectively manage growth, it could lead to rising costs and put pressure on its financial performance.
- Limited History in New Business Lines: Segments like Native products, InstaHelp, home decor wall panels, small home project services, and cleaning subscriptions are relatively new. Their early stage makes it harder to evaluate long-term viability and financial contribution.
- Dependence on Brand and Reputation: Urban Company’s brand name is central to its business model. Any damage to brand image or trust could have a direct negative impact on consumer adoption, service professional retention, and overall financial health.
For all the insights on Urban Company IPO and detailed expert advice, you can download the SMC ACE App or visit the SMC telegram channels. Take smart decisions and apply for the Urban Company IPO easily on the SMC ACE Apply by opening free demat account now.
Frequently Asked Questions – FAQs
1. What are the key dates for the Urban Company IPO?
Urban Company IPO will open for subscription on September 10, 2025, and close on September 12, 2025. Allotment is scheduled for September 15, refunds and share credits for September 16, and listing on BSE and NSE on September 17, 2025.
2. What is the price band and lot size for the Urban Company IPO?
The price band is set at ₹98 to ₹103 per share, with a lot size of 145 shares. Retail investors can apply with a minimum investment amount of ₹14,935.
3. How will the IPO proceeds be utilised?
Net proceeds will be used for technology development and cloud infrastructure, lease payments, marketing activities, and general corporate purposes.
4. What are the major risk factors for investors to consider?
Key risks include heavy reliance on deferred tax credits for profitability, volatility in quarterly earnings, limited IPO funds going into business growth (only 25% of the issue), intense competition in a largely offline market, and auditor observations regarding overseas data backups.
References:
https://www.jmfl.com/Common/getFile/5234
https://www.investorgain.com/gmp/urban-company-ipo-gmp/1418/
Author: All Content is verified by SMC Global Securities.
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