Urban Company Limited (formerly known as UrbanClap) is coming up with its Initial Public Offering (IPO). The company has built a strong brand as India’s leading tech-driven home and beauty services marketplace. In this Urban Company IPO Review, we will cover IPO Date, Price Band, Lot Size, GMP, Issue Details, Financials, Competitive Strengths, Objects of the Issue, Peer Comparison, Reasons to Invest, Risk Factors, FAQs, complete details and conclude whether investors should Subscribe or Avoid this IPO.
About Urban Company Limited
Incorporated in 2014, Urban Company operates as a full-stack online marketplace offering home and beauty services across 51 cities in India, UAE, and Singapore. The platform enables customers to book services such as cleaning, plumbing, electrical work, appliance repair, beauty treatments, and wellness therapies. The company also sells its own products under the brand “Native” and supports service professionals with training, financing, and tools.
As of June 30, 2025, Urban Company had over 54,000 active service professionals, operating in 12,000+ micro-markets. It is the largest online home services platform by transaction value in India.
Urban Company IPO Issue Details
- IPO Date: September 10, 2025 to September 12, 2025
- Listing Date: September 17, 2025 (tentative)
- Face Value: ₹1 per share
- Price Band: ₹98 – ₹103 per share
- Lot Size: 145 shares
- Minimum Investment (Retail): ₹14,935 (at upper band)
- Total Issue Size: ₹1,900 Cr
- Fresh Issue: ₹472 Cr
- Offer for Sale: ₹1,428 Cr
- Book Running Lead Managers: Kotak Mahindra Capital, Morgan Stanley, Goldman Sachs, JM Financial
- Registrar: MUFG Intime India Pvt. Ltd.
- Promoters: Abhiraj Singh Bhal, Raghav Chandra, Varun Khaitan
Competitive Strengths
- Established brand with high consumer trust (UrbanClap brand recall).
- Large professional base with training and background verification.
- Full-stack model ensuring better service quality.
- Expanding product line (water purifiers, smart locks).
- Strong technology backbone enabling scalability.
- Presence in international markets.
Financials (Restated Consolidated)
| Period Ended | 31-Mar-23 | 31-Mar-24 | 31-Mar-25 |
|---|---|---|---|
| Assets (₹ Cr) | 1,631.22 | 1,638.65 | 2,200.64 |
| Total Income (₹ Cr) | 726.24 | 927.99 | 1,260.68 |
| PAT (₹ Cr) | -312.48 | -92.77 | 239.77 |
| Net Worth (₹ Cr) | 1,339.46 | 1,292.64 | 1,781.28 |
- Revenue grew at 36% YoY in FY25.
- Turned profitable in FY25 with ₹239.77 Cr PAT.
- Return on Net Worth (RoNW): 13.35%.
Objects of the IPO
The net proceeds from the IPO will be used for:
- Technology development and cloud infrastructure – ₹190 Cr
- Lease payments for offices – ₹75 Cr
- Marketing activities – ₹90 Cr
- General corporate purposes
Peer Comparison – P/E Ratio – Valuation
- Urban Company IPO P/E: ~61.7x (post-issue EPS ₹1.67, price band upper end ₹103).
- Peers:
- Zomato: 85x
- Nykaa: 67x
- JustDial: 28x
- Industry Average: ~60x
Urban Company valuation is close to industry average but below Zomato and Nykaa.
Reasons to Invest in Urban Company IPO
- Strong brand recall (UrbanClap/Urban Company).
- Fast-growing home services market (expected to grow from $59B in 2024 to $97B by 2029).
- Shift from losses to profitability – clear turnaround story.
- Asset-light, tech-driven business model.
- Expansion into international markets offers scalability.
Risk Factors
- High competition from offline and online players.
- Scalability depends on continuous onboarding of trained professionals.
- Thin margins in some service categories.
- Valuation slightly expensive compared to earnings.
- Consumer retention is critical; brand risk if service quality drops.
Grey Market Premium (GMP)
As per market observers, the Urban Company IPO GMP is around ₹40-45 per share, indicating a potential 40% listing gain. (GMP keeps changing, investors should track latest updates before applying).
How to Apply for Urban Company IPO
Investors can apply through:
- UPI via ASBA through net banking or broker apps (Zerodha, Groww, Upstox, AngelOne).
- Offline ASBA through designated bank branches.
FAQs
1. What is the Urban Company IPO date?
IPO opens on September 10, 2025 and closes on September 12, 2025.
2. What is the IPO price band of Urban Company?
Price band is ₹98 – ₹103 per share.
3. What is the Urban Company IPO lot size?
Investors can bid for a minimum of 145 shares.
4. What is the GMP of Urban Company IPO?
Currently around ₹40-45, subject to change.
5. Is Urban Company IPO good or bad for investment?
It shows strong fundamentals, recent profitability, and sector growth, making it attractive for medium to long-term investors.
6. Who are the promoters of Urban Company?
Abhiraj Singh Bhal, Raghav Chandra, and Varun Khaitan.
7. Should I subscribe to Urban Company IPO?
Given growth, profitability, and reasonable valuation, investors can consider subscribing with a medium to long-term horizon.
Urban Company IPO – Subscribe or Avoid?
Urban Company IPO presents an interesting opportunity in India’s underpenetrated home services sector. With strong brand recognition (UrbanClap), improved financial performance, and growth potential, the IPO is attractively placed for long-term investors. The GMP also suggests decent listing gains. However, risks like competition and valuation premium exist.
Conclusion: Investors can consider Subscribing to Urban Company IPO for listing gains and long-term wealth creation.
Disclaimer: This article is for educational and informational purposes only and should not be considered as investment advice. IPO investments are subject to market risks, and past performance does not guarantee future results. Please consult a financial advisor or do your own research before making any investment decisions.
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