Urban Company, the Gurugram-based home services marketplace, is making big moves as it prepares for its initial public offering (IPO) this year. The company has officially converted into a public entity and announced a name change from “Urbancalp Technologies India Private Limited” to “Urbanclap Technologies India Limited.”
This change comes as the company gears up to file its draft papers for an INR 3,000 crore IPO, expected before the end of March 2025. The IPO will feature both new and existing shares, with the majority of funds raised through fresh share sales.
To manage this process, Urban Company has roped in top financial advisors, including Kotak Mahindra Capital, Goldman Sachs, and Morgan Stanley.
Investors Show Confidence
Ahead of the IPO, global investor Prosus is looking to increase its stake in Urban Company, planning to invest $30 million (about INR 252 crore) through a secondary deal. This move will allow Bessemer Venture Partners to partially exit.
In July last year, Urban Company secured INR 400 crore ($50 million) in a secondary deal with Bengaluru-based venture capital firm Dharana Capital. This deal enabled employees and other shareholders to cash out their shares. Around the same time, Titan Capital, a venture firm founded by Snapdeal’s Rohit Bansal and Kunal Bahl, fully exited its stake in the startup.
Global Expansion and Financial Growth
Urban Company isn’t just focusing on the Indian market. In October 2024, the company entered a joint venture with Saudi Manpower Solutions Company (SMASCO) to launch a new home services platform in Saudi Arabia, marking a significant step in its global expansion strategy.
On the financial front, Urban Company has shown impressive growth. The company reduced its pre-tax losses by 70% in the financial year 2023-24, reporting a loss of INR 93 crore, down from INR 312 crore the previous year. Additionally, its operating EBITDA improved significantly, falling to INR 116 crore in FY24 compared to INR 297 crore in FY23.
As Urban Company steps into this new chapter, all eyes are on its IPO and how the company will continue to grow both in India and globally.