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Urban Company IPO Deep Dive – ₹1,900 Cr Issue, First Profit, and What Investors Should Know

IPOName: Urban Company IPO; ListingDate: 2025-09-17; IPOSize: ₹1,900 Cr; PriceBand: ₹98–₹103; OpenDate: 2025-09-10; CloseDate: 2025-09-12; LotSize: 145; Exchange: NSE, BSE; Registrar: MUFG InTime India; IssueType: Book Built; FaceValue: ₹1;

Urban Company, India’s largest home services marketplace, is preparing to launch its highly anticipated IPO—targeting a ₹1,900 cr capital raise with a price band of ₹98–₹103 per share. The IPO opens on September 10, 2025 and closes on September 12. (ETMarkets)

1. Key IPO Metrics at a Glance

  • Issue Size: ₹1,900 cr (Fresh: ₹429 cr; Offer-for-Sale: ₹1,471 cr) (ET)
  • Price Band: ₹98–₹103 per share (ETMarkets)
  • Lot Size: 145 shares (~₹14,935) (Fortune India)
  • Reservation: QIB – 75%; NII – 15%; Retail – 10% (Fortune India)

2. Urban Company: Business Snapshot

Founded in 2014 as UrbanClap and rebranded later, Urban Company offers services across cleaning, beauty, appliance repair, & more. It operates in 50+ cities domestically—and active in UAE and Singapore. Its hardware vertical Native includes RO purifiers and smart locks. (Wikipedia)

3. Turning to Profit—FY25 Financials

  • Revenue (FY25): ₹1,144.5 cr (↑38% YoY) (TOI, Business Standard)
  • Profit After Tax: ₹239.8 cr (with ₹211 cr deferred tax) → pre-tax profit ~₹28.6 cr (Business Standard, YourStory)
  • Other Metrics:
    • Cash flow from operations: ₹54.6 cr
    • Adjusted EBITDA: positive (₹11.1 cr)
    • Customers: 6.8 million transacting; 48,000 partners
    • Repeat contribution: 82%; Partner avg earning: ₹26,400/month
    (Moneycontrol, UnlistedZone)

4. Use of Proceeds

  • Technology & cloud infrastructure: ₹190 cr
  • Office leasing: ₹70 cr
  • Marketing blitz: ₹80 cr
  • Remaining for general corporate purposes (ETTech)

5. IPO Timing & Investor Windfalls

  • Source of optimism—Accel and Elevation Capital, early backers, may see returns from 2× to 29× on their initial investments (ET)
  • SEBI approval received alongside Boat IPO — signals robust IPO pipeline in 2025 (ET)

6. Risks to Monitor

  • Profit includes tax credit—core profitability remains slim
  • Gig worker discontent—‘auto acceptance’ policy has drawn backlash, especially from female workers seeking flexibility (Mint)
  • ESG & worker rights becoming a frequent flashpoint for gig platforms

7. Final Take

Urban Company’s IPO stands out as a landmark tech startup listing in India, bolstered by its transition to profitability and growing customer base. With a ₹1,900 cr issue and blockbuster early success, this is a marquee event. Still, margin durability, valuation, and worker relations require close scrutiny—especially for retail investors.

Stay tuned to GMPRadar.com for live updates on GMP, allotment, and post-listing insights.

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