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About Urban Company IPO
Urban Company Limited IPO is an IPO aggregating up to ₹1,900 crore. It consists of an offer for sale aggregating up to ₹1,471 crore and a fresh issue aggregating up to ₹429 crore. The shares will be allotted on TBA and the listing of shares will take place on TBA. The credit of shares to the demat account will take place on TBA and the initiation of refunds will take place on TBA.
Objective of Urban Company IPO
- Expenditure for new technology development and cloud infrastructure.
- Expenditure for lease payments for their offices.
- Expenditure for marketing activities.
- General corporate purposes.
Urban Company IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band (₹) | TBA |
Existing Shares to be Sold | Aggregating up to ₹ 1471 crores |
Fresh Issue | Aggregating up to ₹ 429 crores |
EPS (₹) For the year ended March 31, 2024 | (0.66) |
Urban Company IPO Lot Size
| Investor Category | Shares Offered |
|---|---|
QIBs Share Offered | Not less than 75% |
Non-Institutional Bidders (NIBs) | Not more than 15% |
Retail Individual Bidders | Not more than 10% |
Industry Outlook
The growing gig economy in India has supported the expansion of digital platforms over the past few years. As per the policy commission of the National Institution for Transforming India (NITI Aayog), contractual (gig) workers (platform and non-platform) in India grew at a 13% CAGR from FY 2021 to reach 1.12 crores in FY 2024, and are projected to reach 2.08 crores by FY 2029P.
The Indian home services market encompasses a wide range of offerings, from beauty services to home repairs and renovations, with consumption patterns varying significantly based on household income, convenience needs, and personal preferences. This diverse market was valued at ₹4,99,000–5,07,000 crore (~US$ 5,920 crore) in CY 2024 and is projected to grow at a 10–11% CAGR from CY 2024 to CY 2029P, driven by anticipated increasing urbanisation and rising incomes.
The Indian market for water purifiers was valued at ₹4,500–4,700 crore (~US$ 50 crore) in CY 2024 and is projected to grow at a CAGR of 16–18% by CY 2029. The penetration of water purifiers in India was less than 10% in CY 2024 and is significantly trailing other household appliances like air conditioners, refrigerators, televisions, and washing machines.
The home services sectors in regions like the KSA (Kingdom of Saudi Arabia), UAE (United Arab Emirates), and Singapore present a unique blend of challenges and opportunities driven by their distinct socio-economic landscapes. The home services market in the three countries totals ₹1,95,500–2,02,500 crore (~US$ 2340 crore) as of CY 2024, with KSA being the largest market, followed by the UAE and Singapore. These three markets are expected to grow at a 9–10% CAGR till 2029, with KSA growing the fastest at 10–11%, followed by the UAE at 7–8% and Singapore at 6–7% over the same period. These markets, characterised by high urbanisation rates, expatriate-heavy populations, and high disposable incomes, showcase a growing demand for organised, professional home services.
Company Information
Urban Company operates a technology-driven, full-stack online services marketplace for quality-driven services and solutions across various home and beauty categories. They operate in 59 cities across India, the United Arab Emirates (UAE), Singapore, and the Kingdom of Saudi Arabia (KSA), of which 48 cities are in India, as of 31 December 2024. Their platform enables consumers to easily order services, including cleaning, pest control, electrician, plumbing, carpentry, appliance servicing and repair, painting, skincare, hair grooming, and massage therapy. These services are delivered by trained and independent service professionals at the consumer’s convenience. In fiscals 2023 and 2024, they expanded into home solutions with the launch of water purifiers and electronic door locks, respectively, under the brand name ‘Native’.
Strengths of Urban Company IPO
Their multi-category, hyperlocal, home services marketplace benefits from network effects.
When introducing service categories in a micro-market, they prioritise quality and reliability. They believe that early consumer satisfaction drives word-of-mouth referrals, leading to increased market penetration. As penetration increases, they reduce the size of their micro-markets from an initial 3–5 km radius to a 1–3 km radius. This reduction in size leads to better time utilisation by service professionals, thereby benefiting both consumers and service professionals in the form of lower prices for consumers and higher earning potential for the service professionals.
Improved quality of service professionals through in-house training and access to tools and consumables.
They provide in-house training and upskilling initiatives for the independent service professionals, designed to enable them to deliver a quality consumer experience. They believe that the service professionals should use good-quality consumables and tools to deliver a satisfactory consumer experience. Accordingly, they procure products directly from original equipment manufacturers (OEMs) and authorised distributors and sell products under their own ‘Native’ brand, ‘Elysian’ and ‘Crave’ brands, or through exclusive arrangements with brands such as ‘Go Tile’ and ‘Azi-Clean’.
Innovation and product development capabilities.
They have a track record of deploying innovative product solutions at scale to service professionals. According to the Redseer Report, they have been at the forefront of launching innovative products focused on standardising and improving service quality, such as the foam jet pump for AC servicing, co-pilot for diagnosis of malfunctioning appliances, and roll-on wax for more convenient and hygienic waxing, which have been widely adopted by the industry.
Risks of Urban Company IPO
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Their platform relies on third-party cloud infrastructure, and they depend on mobile operating systems for their applications. Any disruptions or failures in the third-party cloud infrastructure or mobile operating systems could negatively impact their business : Their technology infrastructure and services incorporate third-party-developed software, systems, and technologies, as well as hardware purchased or commissioned from third-party suppliers. They face increasing risks in relation to the performance and security of their technology infrastructure and service offerings that may be caused by these third-party-developed components, including risks relating to incompatibilities among these components, service failures, delays, or back-end errors or failures on hardware and software.
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They rely on their partnerships with financial institutions and other third parties for payment processing infrastructure and for the provision of services through their platform. Their business may be disrupted if these financial institutions and third parties become unwilling or unable to provide these services to them on acceptable terms or at all : They rely on partnerships with financial institutions and third parties for elements of their payment-processing infrastructure to process and remit payments to and from consumers and service professionals using their platform. If these financial institutions and third parties become unwilling or unable to provide these services to them on acceptable terms or at all, their business may be disrupted.
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Their business is subject to seasonality, which may result in seasonal fluctuations in operating results and cash flows : The demand for air conditioner cleaning services typically increases in the first quarter of a fiscal year (April to June), leading up to summer, while the demand for house cleaning services and painting increases in the third quarter of a fiscal year (October to December) due to the festive season in India. In addition, during periods of inclement weather such as the monsoon season, the number of active service professionals and the demand for services rendered by service professionals on their platform decrease. As a result of such seasonal fluctuations, their revenue and cash flow from operations may fluctuate.
Urban Company IPO Financials
Particulars (in Rs. crores)
Particulars (in Rs. crores)
IPO Registrar and Book Running Lead Managers
Book running lead managers:
Kotak Mahindra Capital Company Limited Morgan Stanley India Company Private Limited Goldman Sachs (India) Securities Private Limited JM Financial Limited
Registrar for the IPO: MUFG Intime India Private Limited
Business Model
The company earns its revenue through the following sources:
They operate a technology-driven, full-stack online services marketplace for quality-driven services and solutions across various home and beauty categories.
They operate their business under three business segments:
- India Consumer Services: Their consumers can access services across home, beauty, and wellness services.
- Native: They sell water purifiers and electronic door locks to consumers in and outside India.
- International Business: Their consumers can access home and beauty services in the UAE, Singapore, and KSA through their marketplace.
Company Growth Trajectory
Total income increased by 37.83% to ₹930.27 crore in the nine months that ended on 31 December 2024 from ₹674.93 crore in the nine months that ended on 31 December 2023. The revenue from their India consumer services segment increased by 24.14% to ₹653.59 crore in the nine months that ended on 31 December 2024 from ₹526.50 crore in the nine months that ended on 31 December 2023.
The revenue from the sale of their native products increased by 599.71% to ₹75.98 crore in the nine months that ended on 31 December 2024 from ₹10.86 crore in the nine months that ended on 31 December 2023.
The revenue from their international business segment increased by 83.28% to ₹116.46 crore in the nine months that ended on 31 December 2024 from ₹63.54 crore in the nine months that ended on 31 December 2023.
Company Market Position
They operate in 59 cities across India, the United Arab Emirates (UAE), Singapore, and the Kingdom of Saudi Arabia (KSA), of which 48 cities are in India, as on 31 December 2024.
In the nine months that ended on 31 December 2024, they were the leading online full-stack home and beauty services platform in India, based on net transaction value (NTV), as per the Redseer Report.
According to the Redseer Report, ‘Urban Company’ was India’s most searched online home services full-stack platform brand on Google Trends between January 2024 and March 2025. As of 31 December 2024, their platform had facilitated transactions for 1,32,60,000 unique consumers across all geographies where they have operated since inception. Notably, they onboarded 66,40,000 unique consumers, which represents 50.08% of total consumers, between 1 January 2022 and 31 December 2024.
Urban Company Company IPO Profit & Loss
| Parameter | FY22 | FY23 | FY24 |
|---|---|---|---|
Revenue from operations (₹ crores) | 437.575 | 636.597 | 828.018 |
Total Income (₹ crores) | 508.967 | 726.328 | 927.991 |
Profit Before Tax (₹ crores) | (514.145) | (312.442) | (92.727) |
Net profit / (loss) (₹ crores) | (514.145) | (312.484) | (92.772) |
EBITDA (₹ crores) | (549.589) | (364.240) | (146.701) |
EPS (₹) | (3.78) | (2.25) | (0.66) |
Urban Company IPO Cash Flow
| Parameter | FY22 | FY23 | FY24 |
|---|---|---|---|
Profit before tax (₹crores) | (514.145) | (312.442) | (92.727) |
Net Cash from Operating Activities (₹ crores) | (315.139) | (237.798) | (85.575) |
Net Cash from Investing Activities (₹ crores) | (1086.629) | 298.779 | 95.401 |
Net Cash from Financing Activities (₹ crores) | 1382.626 | (25.282) | (29.906) |
Cash and Cash Equivalents (₹ crores) | 26.681 | 62.220 | 42.158 |
How To Check Allotment Status of Urban Company IPO?
You can check the allotment status of shares either on the website of the Securities and Exchange Board of India (SEBI) or on the website of the registrar MUFG Intime India Private Limited. To check the status on the SEBI website:
- Visit the SEBI website
- Click on “Investor Services” and choose “Application Status Check”
- Choose the issue type — Equity or Debt (Equity in this case)
- Select the Issue Name from the drop-down. The issue name is the company’s name, which is Urban Company Limited
- Enter your application number or PAN number
- Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status
Follow these steps to know the allotment status on the registrar’s website:
- Visit the MUFG Intime India Private Limited website
- Choose “Public Issues” from the “Investor Services” drop-down
- Select Urban Company Limited from the drop-down
- Enter your PAN number or Application number
- Click on “Submit” to know the allotment status
How To Apply for Urban Company IPO?
- Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Urban Company IPO FAQs
Where can I read more about Urban Company business?
You can read more about Urban Company and its IPO from the company’s red herring prospectus (RHP) here.
What is the Urban Company IPO?
The Urban Company Limited IPO has an issue size aggregating up to ₹1,900 crore. The IPO opens for subscription on TBA and closes on TBA.
Who is the Registrar for Urban Company IPO?
MUFG Intime India Private Limited is the registrar for this IPO.
