Urban Company plans Rs 1,900 crore IPO

Gurgaon based at-home beauty and lifestyle services business Urban Company has filed preliminary documents with the Securities and Exchange Board of India to raise Rs 1,900 crore through an initial public offering. 

The mobile app-based beauty and home services platform aims to generate Rs 429 crore via a fresh issue of shares, while existing investors plan to offload stakes worth Rs 1,471 crore through an offer for sale, the Press Trust of India reported. According to the business’ draft red herring prospectus, selling shareholders include Accel India, Elevation Capital, Bessemer India Capital Holdings II Ltd, Internet Fund V Pte Ltd, and VYC11 Ltd.

Urban Company intends to use Rs 190 crore of the proceeds to strengthen its technology and cloud infrastructure, Rs 70 crore for lease payments on office spaces, and Rs 80 crore for marketing activities. Remaining funds will go towards general corporate purposes, India Retailing reported. 

Urban Company operates a full-stack, tech-enabled marketplace for at-home services spanning cleaning, appliance repair, plumbing, electrical work, pest control, beauty, grooming, and massage therapy. Services are provided by independent professionals at customers’ homes. 

As of December 31, 2024, the company had a presence in 59 cities across India and in international markets including the United Arab Emirates, Singapore, and Saudi Arabia. Kotak Mahindra Capital, Morgan Stanley India, Goldman Sachs (India) Securities, and JM Financial are managing the IPO as book-running lead managers.