SBI Mutual Fund, Permira, Other Investors Eye ₹450 Cr Slice of Urban Company Before IPO

SBI Mutual Fund, global tech investor Permira, and a few others are reportedly in advanced talks with early backers of IPO-bound Urban Company to acquire shares worth about ₹450 crore through secondary deals, according to a report published by MoneyControl.

The transactions are expected to take place in the coming weeks. In addition, early investors in Urban Company, including Accel, Bessemer Venture Partners, Tiger Global, Elevation Capital, and others will sell their shares to large investors ahead of the IPO (initial public offering) launch due this year.

The Gurugram-based company filed its draft red herring prospectus (DRHP) in April. The IPO will be a mix of fresh share issue worth ₹429 crore and an offer for sale of shares valued at about ₹1,471 crore.

The ongoing transactions are secondary in nature, which means that the shares will change hands between investors, with no proceeds going to Urban Company itself. Currently, Urban Company is valued at $1.8 billion (₹15,500 crore).

Urban Company's Financials

The IPO-bound company has turned profitable after the home service marketplace reported a consolidated net profit of ₹239.8 crore in the financial year 2025, the company revealed in its annual report on Wednesday. Last year, the company reported a net loss of ₹92.7 crore.

It has also posted a 38.2% year-on-year increase in operational revenue to ₹1,144.5 crore. This number was driven by growth in its India and international businesses. A key contributor to the surge in net profit was the recognition of deferred tax assets amounting to ₹211 crore.

In addition, it also reported an adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) of ₹11.1 crore, against a loss of ₹119 crore in FY24. Its profit before tax was ₹28.6 crore in the same fiscal year.

Urban Company IPO

The company is expected to raise ₹1,900-crore through its initial public offering. The unicorn intends to use ₹190 crore of the net proceeds for developing technology and cloud infrastructure, ₹70 crore for paying the lease of its offices, and another ₹80 crore for marketing-related activities.

It might also undertake a pre-IPO placement before filing RHP for an aggregate amount of ₹85.8 crore. Urban Company operates a technology-driven, online services marketplace for services and solutions across various home and beauty categories.

As of December, the company operated in 48 cities in India and also in UAE, Singapore, and Saudi Arabia. Its founders have also offloaded shares worth ₹779.08 crore in secondary deals. Of this, Abhiraj Bhal, Varun Khaitan, and Raghav Chandra have sold shares worth ₹259 crore each.

The founders offloaded a portion of their shares to some of the company’s existing investors. The buyers include Prosus Ventures, Dharana Capital, Think Investments, former ITC executive Sanjiv Rangrass, SailThru Ventures, and Swiggy cofounder Sriharsha Majety.