IPO-bound Urban 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.
The company 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.
“The improvement in profitability was primarily driven by the P&L credit attributable to the recognition of a deferred tax asset amounting to ₹2,112.12 million in the year ended March 31, 2025. It has also improved due to operational leverage in fixed costs and driving efficiency across other costs,” the report notes.
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
In April, Urban Company filed the draft red herring prospectus with market regulator the Securities and Exchange Board of India for ₹1,900-crore initial public offering, of which only ₹429 crore is the fresh issue component.
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.
