Urban Company’s ₹1,900 crore IPO starts trading tomorrow
Accel leads with ~27x returns; Elevation and Bessemer also see strong gains
Tiger Global’s return is modest at 1.4x
Shares of home services platform Urban Company are set to begin trading tomorrow after its ₹1,900 crore IPO. The public issue will offer significant windfalls to early backers like Accel, Tiger Global, Elevation Capital, and others. This was first reported by Inc42.
Accel, which invested in Urban Company in 2015, sold shares worth up to ₹390 crore through the offer for sale (OFS). The investor offloaded about 3.79 crore shares at the upper end of the price band of ₹98 to ₹103 per share. With this, Accel will get nearly 27x returns on its average acquisition cost of ₹3.77 per share.
Similarly, Elevation Capital V will get approximately 19x returns on its average acquisition cost of ₹5.39 as the investor sold 3.36 crore shares worth ₹346 crore. Bessemer India sold 1.68 crore shares for ₹173 crore – roughly 14x gains on its original investment of ₹7.14 per share.
Vy Capital offloaded 2.10 crore shares valued at ₹216 crore, and will achieve nearly a 5-fold return on its ₹20.40 per share purchase price. However, Tiger Global is expected to gain lower as compared to these investors because it sold 2.94 crore shares for ₹303 crore. It will earn about 1.4 times its average acquisition cost of ₹74.41 per share.
It is pertinent to note that these investors will still retain a substantial stake in Urban Company even after the listing scheduled tomorrow, September 17.
Urban Company IPO
The IPO, which concluded on September 12, was oversubscribed by an impressive 103.63 times, as investors placed bids for 1,106.45 crore shares compared to the 10.67 crore shares available.
It comprised a fresh issue of shares worth ₹472 crore and an offer for sale (OFS) component of ₹1,428 crore. The price band has been set between ₹98 and ₹103 per share, with investors able to bid in lots of 145 shares.
The company plans to use the fresh capital to enhance its technology and product offerings, expand into new markets, invest in brand building, and support overall corporate needs.
In FY25 2025, the company reported a 38% revenue increase to ₹1,144.5 crore and swung to profitability with a ₹240 crore profit after posting a loss of ₹93 crore the previous year.
Product sales, including native, make up around 26% of total revenue, underscoring the diversification beyond service transactions. 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.
