Urban Company, the at-home services provider, has officially converted its parent company, UrbanClap Technologies, into a public limited firm. This key transition is essential to its much-anticipated initial public offering (IPO).
Urban Company’s IPO plans
The Prosus-backed startup is preparing to file its draft red herring prospectus within the next two months. Reports suggest the company aims for an IPO valued at approximately ₹3,000 crore.
According to regulatory filings, the company intends to list its equity shares at an opportune time in consultation with its book-running lead managers and other advisors. The IPO launch will also be subject to receiving necessary regulatory approvals.
Financial performance and growth
Urban Company has demonstrated significant financial improvements over the past year. In the financial year 2023-24, it reduced its net loss to ₹93 crore from ₹312 crore in the previous year. Additionally, its operating revenue surged nearly 30% year-on-year, reaching ₹827 crore.
The company has yet to file its final financial statements for 2023-24 with the Registrar of Companies. However, in the first quarter of the current fiscal year, Urban Company reported a pre-tax profit, showcasing steady financial progress.
Industry trends and market competitors
Urban Company’s move comes when several other tech-driven startups are also planning to go public. Companies such as SoftBank-backed OfBusiness, Flipkart-backed Shadowfax, and eyewear brand Lenskart are among those looking to enter the stock market.
Business model and expansion
Founded in 2014, Urban Company operates in two major service categories:
- Beauty and wellness—salon and spa services, laser hair reduction
- Home maintenance and repairs: plumbing, electrical work, carpentry, pest control, appliance repairs, painting, and deep cleaning
The company has a network of over 50,000 service professionals across India. Additionally, it has been expanding into the consumer product segment, launching smart locks and a range of water purifiers under its ‘Native’ brand.
Investor interest and strategic moves
Urban Company has witnessed strong investor interest in recent years. Last year, Snapdeal founders Kunal Bahl and Rohit Bansal, through their investment fund Titan Capital, exited their investments in the company. Their early-stage investment yielded nearly 200 times returns, with Vy Capital’s Dharana Capital acquiring their stake in a $50 million secondary transaction.
Conclusion
Urban Company’s transition to a public entity is a crucial milestone as it prepares for its IPO. With a strong financial recovery, an expanding service portfolio, and increasing investor confidence, the company is well-positioned for growth in the public market. Investors and market watchers will closely follow its next steps as it moves towards a stock market debut.
