Urban Company, India’s leading hyperlocal services platform, has set the stage for one of 2024’s most anticipated IPOs. With a price band fixed at ₹98-103 per share and subscription opening on September 10, the ₹1,900 crore issue represents a major milestone for the home services unicorn backed by Tiger Global and other prominent investors.
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Urban Company Key IPO Details at a Glance
At the upper end of the price band, the company would be valued at about ₹14,790 crores (approximately $1.6 billion), making it one of the most significant tech IPOs of the year.
Urban Company IPO Timeline
| Event | Date | Details |
|---|---|---|
| Anchor Bidding | September 9, 2025 | Institutional investors bidding |
| IPO Opens | September 10, 2025 | Public subscription begins |
| IPO Closes | September 12, 2025 | Three-day subscription window |
| Allotment | September 15, 2025 | Expected allotment date |
| Listing | September 17, 2025 | Stock exchange debut |
Investment Requirements and Structure
Lot Size and Investment Details
| Category | Lot Size | Shares | Minimum Investment |
|---|---|---|---|
| Retail | 1 lot | 145 shares | ₹14,935 (at upper price) |
| sNII | 14 lots | 2,030 shares | ₹2,09,090 |
| Employee Discount | – | – | ₹9 per share discount for eligible employees |
The mix includes a fresh issue of ₹472 crore and an offer for sale from existing investors including Accel and Bessemer.
Strong Financial Performance Drives IPO Confidence
Recent Financial Highlights
Urban Company’s path to IPO has been marked by significant financial improvements. The company posted a loss before tax of ₹93 crore in FY24, down 70% from ₹312 crore a year ago, while revenue from operations increased to ₹826.7 crore compared to ₹636.5 crore in FY23, representing a 30% growth.
Profitability Milestone
A major turning point came when Urban Company turned profitable before tax (PBT) in April 2024, according to CEO Abhiraj Singh Bhal, demonstrating the company’s path to sustainable profitability.
Business Model and Market Position
Founded as UrbanClap and rebranded to Urban Company, the platform operates in the hyperlocal services space, connecting customers with verified service professionals for home cleaning, beauty, repairs, and wellness services.
Key Business Metrics
- 1,213 employees as of May 31, 2025
- India business contributes approximately 90% of revenues
- Achieved adjusted EBITDA breakeven in Q1 FY24
- 38% revenue increase in Q1 FY25 with 4% profit before taxes margin
Investment Considerations and Market Outlook
Growth Trajectory
The company’s total expenses declined slightly by 1.7% from ₹1,038.9 crore in FY23 to ₹1,020.8 crore in FY24, indicating improved operational efficiency alongside revenue growth.
Market Position
As India’s leading hyperlocal services platform, Urban Company has established strong market presence with a proven business model and path to profitability.
Regulatory and Compliance Framework
Urban Company has filed all necessary regulatory documents and received approvals for the public issue. The company operates under established compliance frameworks for both service delivery and financial operations.
Corporate Governance
With backing from reputable institutional investors and a track record of transparent operations, the company maintains strong corporate governance standards essential for public listing.
What Investors Should Know
Risk Factors
Like any growing technology company, Urban Company faces competitive pressures, regulatory changes, and market expansion challenges that potential investors should consider.
Growth Opportunities
The expanding Indian services market, increasing digitization, and urbanization trends present significant growth opportunities for the platform.
For more IPO analysis and investment guides, explore our Investment Section and Market News.
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Frequently Asked Questions
Q: What is the minimum investment required for Urban Company IPO, and are there any special discounts available?
A: The minimum investment for retail investors is ₹14,935, which covers 145 shares (1 lot) at the upper price band of ₹103. Urban Company is offering a special discount of ₹9 per share to eligible employees. The IPO has a three-day subscription window from September 10-12, 2025, with anchor investor bidding on September 9. Small non-institutional investors (sNII) need to invest a minimum of ₹2,09,090 for 14 lots (2,030 shares).
Q: How has Urban Company’s financial performance improved leading up to the IPO?
A: Urban Company has shown remarkable financial improvement, with losses narrowing by 70% from ₹312 crore in FY23 to ₹93 crore in FY24, while revenue jumped 30% to ₹826.7 crore. The company achieved a major milestone by turning profitable before tax in April 2024. Additionally, expenses decreased by 1.7% to ₹1,020.8 crore in FY24, and the India business achieved adjusted EBITDA breakeven in Q1 FY24. CEO Abhiraj Singh Bhal reported a 38% revenue increase in Q1 FY25 with a 4% profit before taxes margin.
