Home services start-up Urban Company has gained board approval to raise ₹528 crore (approximately $60 million) in fresh capital through an initial public offering (IPO), according to filings with the Registrar of Companies (RoC).
The start-up has reportedly adjusted its IPO size, initially planned at ₹3,000 crore with a significant portion expected to be a primary raise, to a revised target of ₹528 crore in fresh capital.
“There is some readjustment to reflect the current realities of the markets,” a person briefed on the development said, adding that Urban Company is likely to file its draft papers with the Securities and Exchange Board of India (Sebi) over the next month.
This move comes just a month after Urban Company went public and changed its name from "Urbanclap Technologies India Private Limited" to "Urbanclap Technologies India Limited."
According to insiders, the firm run by Abhiraj Bhal would soon file a draft red herring prospectus with Sebi. While little is known about Urban Company's IPO proposal, it is claimed to have hired Kotak Mahindra Capital, Goldman Sachs and Morgan Stanley as investment bankers to oversee the sale.
Quick Commerce Entry
Urban Company’s plans for an IPO follow its entry into India’s fast-growing quick commerce sector with the launch of Insta Maids, a service offering 15-minute bookings for household help. The service includes tasks such as utensil cleaning, brooming, mopping and cooking preparation, performed by maids paid on an hourly basis.
Urban Company has raised approximately $376 million in funding across 12 rounds, with its most recent valuation pegged at $2.5 billion, as per Tracxn data. The start-up’s largest recent funding round occurred in 2021, when it secured $255 million from investors including Prosus, Dragoneer and Wellington Management.
In addition to its at-home services, Urban Company has ventured into the direct-to-consumer market by launching its own line of water purifiers and smart locks. In March, the company also introduced a service enabling customers to book a housekeeper in just 15 minutes.
