About the Company
Founded in October 2014 by Varun Khaitan, Abhiraj Bhal, and Raghav Chandra, Urban Company (formerly known as UrbanClap) is an Indian service provider company that connects individuals with professionals for home services. It offers a wide range of services ranging from beauty treatments, cleaning to carpentry and repairing.
Valuation
The company concluded its last ESOP liquidity program in December 2021 at a valuation of $2.8 billion. In FY 2024, it also completed a new buyback at a valuation of approximately $2.2 billion to $2.5 billion.
Operations and Performance
Urban Company is a tech-driven home services platform operating in 50+ Indian cities and international markets like the UAE, KSA, and Singapore. It offers services such as beauty, cleaning, and repairs through 50,000+ trained professionals. In FY24, it achieved ₹827 Cr in revenue with losses reduced to ₹93 Cr, reflecting improved unit economics and efficiency. Handling over 4.5 million monthly orders and a 60%+ repeat rate, the company continues to scale while focusing on quality, partner productivity, and profitability.
Issue Size
| Particulars | Details |
|---|---|
| Total shares offered | TBD |
| Fresh issue | INR 528 Cr |
| Offer for sale | TBD |
| Face value | TBD |
| Price band | TBD |
| Lot size | TBD |
Financials
| Financial Year | FY 2022 (INR Cr) | FY 2023 (INR Cr) | FY 2024 (INR Cr) |
|---|---|---|---|
| Total Assets | 1924 | 1908 | |
| Revenue | 438 | 637 | 827 |
| Loss before tax* | 512 | 308 | 93 |
IPO Schedule
| Activity | Date |
|---|---|
| DRHP Filing | May 2025 |
| IPO Opens for Bidding | TBD |
| IPO Closes for Bidding | TBD |
| Basis of Allotment | TBD |
| Refund Initiation | TBD |
| Credit to Demat Accounts | TBD |
| Listing on Stock Exchange | TBD |
Strengths
- Consumer-first approach has made it a trusted market leader.
- Transparent pricing simplifies decision-making for users.
- Broad service range with highly vetted professionals ensures quality.
- Intuitive, user-friendly app enhances customer experience.
- New venture ‘InstaMaid’ holds promising growth potential.
- Strong brand reputation drives customer retention and referrals.
- Scalable business model supports rapid geographic expansion.
Risks
- Ongoing concerns around fair labor practices and worker welfare.
- Heavy reliance on gig workers may impact service consistency and profitability.
- Vulnerable to cybersecurity threats due to extensive user and provider data.
- Negative publicity can quickly damage brand trust and user base.
- Regulatory changes in gig economy laws could disrupt operations.
- Environmental impact of frequent home service logistics remains a concern.
Reasons IPO was slashed by 80%
- Urban Company is considering a pre-IPO placement with select investors, which could further reduce the public offer size.
- Global market volatility and uncertainty
- The company is still dealing with losses which affects investor sentiment
- Need-based capital a focal point instead of high cash burn in uncertain economic times
Future Plans
Urban Company plans to expand into more Tier 2 and 3 cities in India and grow its international presence, especially in the Middle East and Southeast Asia. It aims to achieve profitability by improving operational efficiency, enhancing partner earnings, and introducing models like on-demand and subscription services. The company is also investing in technology and upskilling while preparing for their potential IPO.