Urban Company, India’s leading home services marketplace, has officially transitioned from a private limited company to a public entity. The company has changed its name from Urbancalp Technologies India Private Limited to Urbanclap Technologies India Limited. This move signals its preparations for an upcoming initial public offering (IPO), which is expected to raise approximately ₹3,000 crore (around $350 million).
IPO Plans and Financial Performance
Urban Company has appointed Kotak Mahindra Capital, Goldman Sachs, and Morgan Stanley as lead managers for the IPO. The company plans to file draft IPO papers by the end of March 2025, aiming to capitalize on its strong market position in India and abroad.
Financially, the company has demonstrated significant improvement. For the fiscal year ending March 2024, Urban Company reported a 30% year-on-year increase in operational revenue, reaching ₹827 crore, up from ₹637 crore in FY23. More importantly, the company’s losses before tax have drastically reduced from ₹312 crore in FY23 to ₹93 crore in FY24. The first quarter of FY25 saw a profit before tax of ₹12 crore, marking a turning point towards sustained profitability.
Market Position and Expansion
Founded in 2014 by Abhiraj Singh Bhal, Varun Khaitan, and Raghav Chandra, Urban Company has become a household name for home services. The platform connects customers with professionals for beauty treatments, cleaning, plumbing, appliance repair, and other essential services. Currently, it operates in over 60 cities across India and international markets, including the UAE, Singapore, and Saudi Arabia.
Beyond services, Urban Company has diversified into branded home appliances, recently launching its own line of water purifiers. This expansion showcases the company’s ambition to evolve beyond its marketplace model and establish itself as a consumer brand.
Investor Confidence and Future Prospects
Investor sentiment towards Urban Company remains strong. Its backers include Prosus, Tiger Global, and Steadview Capital, with Prosus recently committing an additional $30 million (approximately ₹250 crore) in a secondary transaction. This deal facilitates a partial exit for Bessemer Venture Partners, reinforcing confidence in Urban Company’s business model and growth trajectory.
Our Opinion on the News
Urban Company’s transition to a public entity marks a major milestone in its journey. The company has successfully built a scalable, tech-driven business with strong brand recognition. With its improving financial performance, strategic expansion, and investor backing, it appears well-positioned for a successful IPO. The upcoming public listing will provide it with greater access to capital and enhance its credibility in an increasingly competitive market.