Urban Company Files for ₹1,900 Crore IPO to Drive Global Expansion and Tech Innovation
New Delhi, April 2025 — India’s largest tech-enabled home services platform, Urban Company, has officially filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise ₹1,900 crore through an Initial Public Offering (IPO). The highly anticipated listing marks a significant milestone in the company’s journey from a start-up to a global consumer services brand.
The IPO is set to include a fresh issue of equity shares and an Offer for Sale (OFS) component by existing investors, providing both capital infusion and partial exit opportunities for early backers.
IPO Structure: Breakdown and Fund Utilization — Urban Company IPO 2025
Urban Company’s ₹1,900 crore IPO will comprise:
- Fresh Issue of Shares: Proceeds will go directly to the company.
- Offer for Sale (OFS): Existing investors, including early-stage venture capital firms, will dilute part of their stake.
Use of Proceeds:
The fresh capital raised from the IPO will be strategically allocated toward:
- Geographic Expansion: Launch operations in new Tier 2/3 Indian cities and expand international footprints in the Middle East, Southeast Asia, and Australia.
- Technology Enhancement: Upgrade its proprietary platform with AI-driven service scheduling, predictive maintenance, and improved customer profiling.
- Brand and Marketing Initiatives: Increase market penetration and reinforce Urban Company’s leadership in the home services category.
- Working Capital & Corporate Needs: Support day-to-day operations and general business requirements.
About Urban Company: Disrupting the Home Services Industry
Founded in 2014 by Abhiraj Bhal, Raghav Chandra, and Varun Khaitan, Urban Company (formerly UrbanClap) has revolutionized India’s unorganized home services sector. The platform offers a wide array of on-demand services, including:
- Beauty and wellness at home
- Cleaning and pest control
- Plumbing, electrical, and appliance repair
- Home painting and renovation services
Currently operating in 50+ cities across India, Urban Company has also established a solid presence in Dubai, Abu Dhabi, Singapore, and Sydney, with plans to penetrate new high-growth international markets.
Its mobile-first platform connects over 50,000 trained service professionals with a growing user base of more than 5 million customers—offering end-to-end control over quality, customer experience, and pricing.
Financial Performance and Investor Confidence
Urban Company has raised over $445 million across multiple funding rounds. Its major investors include:
- Prosus Ventures
- Tiger Global
- Vy Capital
- Bessemer Venture Partners
- Steadview Capital
The company has shown robust revenue growth, improved unit economics, and a sharp rise in repeat transactions—driven by customer trust and loyalty. Its financials reflect a maturing startup entering the next phase of sustainable profitability.
The IPO will allow early investors to partially exit while giving Urban Company the war chest to scale operations, invest in innovation, and build long-term shareholder value.
Strategic Outlook – The Road Ahead
Urban Company plans to:
- Double down on personalization through data-driven user behavior modelling.
- Build a full-stack tech infrastructure to support end-to-end training, onboarding, and job tracking for service partners.
- Launch new verticals, including senior care, green cleaning, and home IoT servicing.
- Elevate service standards via regular skill certification and equipment upgrades.
These efforts are aligned with its mission to become the “Amazon of Home Services”, both in India and globally.
FAQs: Urban Company IPO 2025
What is Urban Company’s IPO size?
Urban Company is aiming to raise ₹1,900 crore through a combination of fresh shares and Offer for Sale by existing shareholders.
When will Urban Company go public?
The exact IPO date will be announced post regulatory approvals. Tentative listing is expected in Q3 2025, subject to market conditions.
How will the funds be used?
The funds will be used for expanding into new markets, enhancing its AI-powered platform, marketing efforts, working capital, and general corporate purposes.
Who are Urban Company’s key investors?
Prominent investors include Tiger Global, Prosus Ventures, Steadview Capital, Vy Capital, and Bessemer Venture Partners.
What services does Urban Company offer?
It offers at-home beauty services, appliance repair, deep cleaning, plumbing, electrician work, home painting, and more across India and global locations.
Conclusion
Urban Company’s planned IPO in 2025 represents a turning point in India’s tech-driven services ecosystem. With a strong business model, loyal user base, and significant investor backing, the company is poised to enter the public markets with momentum and long-term vision.
As it scales new heights, Urban Company stands not only as a leader in the home services sector, but as a symbol of India’s maturing consumer tech landscape.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a solicitation, or a recommendation to invest. Please consult a registered financial advisor before making any investment decisions.
