Urban Company Prepares for IPO, Converts to Public Entity
Home services platform Urban Company has initiated its journey toward an initial public offering (IPO) by converting it into a public entity. The company's board has approved changing its name from "Urbancalp Technologies India Private Limited" to "Urbanclap Technologies India Limited," marking its first significant step toward going public.
IPO Details and Preparations
The company reportedly aims to raise approximately Rs 3,000 crore ($350 million) through its public offering. Urban Company has enlisted prominent financial institutions as lead managers:
- Kotak Mahindra Bank
- Goldman Sachs
- Morgan Stanley
The company is expected to file its draft IPO papers by the end of March.
Pre-IPO Developments
Prosus, an existing investor, plans to increase its stake in the company through a Rs 250 crore ($30 million) secondary investment, which would facilitate a partial exit for Bessemer Venture Partners. The company's most recent ESOP liquidity program was completed in December 2021 at a $2.8 billion valuation, followed by a buyback between $2.2 billion and $2.5 billion last year.
Business Operations and Financial Performance
Urban Company has established a significant presence across:
- More than 60 cities in India
- UAE
- Singapore
- Saudi Arabia
The company maintains a network of over 55,000 hand-picked service professionals and has raised more than Rs 3,457 crore ($450 million) from investors, including Tiger Global, Accel, Elevation Capital, and Dharana.
For the fiscal year ending March 2024, Urban Company reported:
- 30% year-on-year revenue growth to Rs 827 crore
- 70% reduction in losses to Rs 93 crore