Urban Company set to file DRHP for Rs 2,000-crore IPO
Urban Company
is preparing to file its draft red herring prospectus (
DRHP
) in the coming days for a Rs 2,000-crore initial public offering (IPO), people aware of the development told ET.
The offering will comprise a primary issue of about Rs 500 crore and a secondary share sale of approximately Rs 1,500 crore, they said.
The company has trimmed the overall IPO size from an earlier planned Rs 3,000 crore with investors offloading a lesser stake in the company than originally planned.
ET had first reported on April 10 that Urban Company had readjusted its IPO size.
One of the persons said that some of the existing backers are likely to increase their stakes during the IPO, while adding that the company's founders Abhiraj Singh Bhal, Varun Khaitan and Raghav Chandra are not participating in the offer-for-sale (OFS) component.
'The company is not in need of a large primary fundraise to finance its expansion plans as it continues to generate cash,' the person said.
According to Tracxn, Bhal, Khaitan and Chandra together own 20.7 per cent of the company. Global technology investor Vy Capital holds a 13.8 per cent stake, followed by
Accel
, which owns 12.7%, and Elevation Capital, which holds an 11.2 per cent stake.
Urban Company appointed Kotak Mahindra Capital, Morgan Stanley, Goldman Sachs and
JM Financial
as bankers to the issue.
IPO preparation and financials
Over the past year, the company closed multiple pre-IPO secondary rounds at a valuation of around $1.8 billion, people in the know said.
Last July, investment firm Dharana Capital had acquired $50 million worth of Urban Company's shares in secondary transactions from early investors and employees. This included Titan Capital (led by Kunal Bahl and Rohit Bansal), which secured an almost 200-fold return on its Rs 57 lakh investment in Urban Company.
In FY25, Urban Company is estimated to have grown 35-40 per cent year-on-year during the financial year FY25 and has turned profitable at a consolidated level.
Urban Company narrowed its net loss for fiscal year 2024 to Rs 93 crore from Rs 312 crore in the previous financial year. Its operating revenue increased nearly 30 per cent year-on-year to Rs 827 crore. For the first quarter of fiscal year 2025, Urban Company reported a pre-tax profit.
Besides at-home services, the company has also entered the direct-to-consumer space with the launch of its own water purifiers and smart locks. In March, it launched a service that allowed users to book a househelp in 15 minutes.
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