IPO Details
Issue Opening Date: September 10, 2025
Issue Closing Date: September 12, 2025
Issue Size: ₹ 1,900 Cr. (@ upper Price Band of Rs.103)
Fresh Issue: ₹ 472 Cr.
Offer for Sale: ₹ 1,428 Cr.
Our View: Subscribe for Long Term Horizon
Price Band: ₹ 98 to ₹ 103 per Equity Share
Employee Discount: ₹ 9/Share
Lot Size: 145 Shares & in multiples thereafter
Minimum Application Amount: ₹ 14,935/- (145 Shares)
Maximum Application Amount: ₹ 1,94,155/- (1,885 Shares)
Small HNI: ₹ 2,09,090/- (2,030 Shares)
Big HNI: ₹ 10,00,645/- (9,715 Shares)
Company Overview
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 51 cities across India, United Arab Emirates (“UAE”) and Singapore, excluding cities served by joint venture in Kingdom of Saudi Arabia (“KSA”), of which 47 cities are in India, as at June 30, 2025.
The company’s platform enables consumers to easily order services, including cleaning, pest control, electrician, plumbing, carpentry, appliance servicing and repair, on demand home-help assistance, painting, skincare, hair grooming and massage therapy. 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’. They have also recently launched, and are in the process of scaling up, on demand home-help assistance (“InstaHelp”) offering in specific micro markets across a number of cities in India.
As of June 30, 2025, the company’s platform has facilitated transactions for 14.59 million unique consumers across all geographies where it has operated since inception. The company has onboarded 6.81 million consumers, i.e., 46.67% of total consumers between July 1, 2022 and June 30, 2025.
Key Highlights
Multi-category, hyperlocal, home services marketplace benefits from network effects
Established brand trusted by consumers
Improved quality of service professionals through in-house training and access to tools and
consumables
Robust technology platform powering service fulfilment, consumer growth and service professional
empowerment
Innovation and product development capabilities
Scale and technological capabilities have helped the company achieve profitability
Objects of the Issue
Expenditure for new technology development and cloud infrastructure (₹ 190 Cr.)
Expenditure for lease payments for the offices (₹ 75 Cr.)
Expenditure towards marketing activities (₹ 90 Cr.)
General Corporate Purposes
Offer for Sale Equity Shares aggregating to ₹ 1,428 Cr. The company will not receive any proceeds from
the Offer for sale
Our View
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. In the quarter ending June 2025, the platform had around 54,347 average monthly active service professionals and 70.2 lakhs annual transacting customers.
To support its professionals, Urban Company provides training, tools, financing, insurance, and branding opportunities, improving both service standards and earning potential. As per the Redseer Report, the home services industry in India is expected to grow at a CAGR of 10-11%, reaching US$100 billion in Fiscal 30 driven by rising urbanization and increasingly busy lifestyles whereas the home services industry in India is largely unorganized, fragmented, and offline, with online penetration of less than 1.0%, as of Fiscal 2025 based on net transaction value.
However, risks to consider are high Competition and Market Penetration, Customer Satisfaction, Challenges of Managing Growth, International Uncertainty, Regulatory Hurdles, ability to attract and retain service professionals on the platform, Limited History in New Business Lines, Dependence on Brand and Reputation, Losses and Cash Flow Concerns can affect the business and financial results.
On the financial front, the company has delivered CAGR of 34% revenue growth between FY23-FY25. It turned profitable in just FY25. The company operated on an adjusted EBITDA margin of 5.74% for Q1FY26. Net Transaction Value, increased by 28% YoY in FY25. 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. Contribution margin improved from 18.81% in FY24 to 19.53% in FY25.
The issue is priced at a P/BV of 8.25 based on its NAV of ₹ 12.48 as at Q1FY26. If we attribute FY26 earnings, then the asking price is at a P/E of ~515x and FY25 P/E stands at ~60x. As per RHP there are no listed peers. Urban Company gives investor an opportunity to invest in India’s dynamic gig economy. Looking at all the factors, risks, opportunities and valuation and also the advantage of first mover, investors can invest with long term horizon.
Brief Financials
| PARTICULARS |
₹ in Million |
| As at June 2025 |
FY ’25 |
FY ‘24 |
FY ‘23 |
| Total Income |
3,672.67 |
11,444.65 |
8,280.18 |
6,365.97 |
| Total Expenditure |
3,842.48 |
12,234.76 |
10,207.18 |
10,386.80 |
| EBITDA |
(47.94) |
(315.40) |
(1,467.01) |
(3,642.40) |
| Profit before Tax |
56.35 |
285.53 |
(927.27) |
(3,124.42) |
| Profit after Tax |
69.38 |
2,397.65 |
(927.72) |
(3,124.84) |
| E.P.S. (Diluted) |
0.05 |
1.65 |
(0.66) |
(2.25) |
| P/E (x) (Diluted) |
- |
60 |
- |
- |
| RONW (%) |
0.38 |
13.35 |
(7.18) |
(23.33) |
PRICE CHART (@ ₹ 103) (Retail Category)
| LOT SIZE |
| Amount |
| 145 |
14,935 |
| 290 |
29,870 |
| 435 |
44,805 |
| 580 |
59,740 |
| 725 |
74,675 |
| 870 |
89,610 |
| 1,015 |
104,545 |
| 1,160 |
119,480 |
| 1,305 |
134,415 |
| 1,450 |
149,350 |
| 1,595 |
164,285 |
| 1,740 |
179,220 |
| 1,885 |
194,155 |
HNI Payment Chart
| Category |
| No. of Shares |
Minimum Bid Lot Amount (Rs.) |
| Small HNI |
2,030 |
209,090 |
| Big HNI |
9,715 |
1,000,645 |
Indicative Time Table
| Tentative Events |
| Indicative Dates |
| Finalisation of Basis of Allotment with the Designated Stock Exchange |
15/9/2025 |
| Initiation of refunds/unblocking ASBA Fund |
16/9/2025 |
| Credit of Equity Shares to demat accounts of Allottees |
16/9/2025 |
| Commencement of trading of the Equity Shares on the Stock Exchanges |
17/9/2025 |
Disclaimer:
The content provided in this blog is for informational and educational purposes only and should not be construed as investment, legal, or tax advice. While Sushil Finance makes reasonable efforts to ensure accuracy and reliability of the information, we do not guarantee its completeness or timeliness. Readers are advised to consult with their financial advisor before making any investment decisions. Sushil Finance shall not be held responsible for any direct or indirect loss arising from use of this content. Investments in securities are subject to market risks. Read all scheme-related documents carefully before investing.
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