Urban Company raises Rs 854 crore from anchor investors ahead of IPO

Home services marketplace Urban Company raised Rs 854 crore anchor investors ahead of its IPO, opening tomorrow. The issue will close on September 12. According to a release put out, the company allocated 8.29 crore shares to investors at Rs 103 apiece, which is the upper price band of the IPO.

Some of the marquee names who participated in the anchor round include SBI Fund, Monetary Authority of Singapore, HDFC MF, Fidelity Securities, Nomura, ICICI Pru Life, SBI Life, Citigroup, Goldman Sachs among others.

Analysts believe Urban Company’s IPO offers investors an opportunity to participate in India’s leading tech-enabled home and beauty services platform, with proven scalability across 12,000+ micro-markets in India and select international markets.

The company’s hyperlocal model drives efficiency, network effects and high engagement, while continued investments in professional training, retention and technology (AI-driven recommendations, operational tools and products like ‘Native’ and ‘Co-Pilot’) strengthen its competitive moat.

Looking at the financials, Urban Company has delivered robust growth, with revenue from operations rising 30% in FY24 and 38% in FY25, alongside a turnaround to net profit of Rs 240 crore, reflecting operational leverage and improved unit economics.

On valuation, at the upper price band of Rs 103, the issue is asking for a market cap of Rs 14790 cr. Based on FY26E annualized earnings and the fully diluted post-IPO capital, the company is asking a market cap-to-sales multiple of 10x, which appears fully priced given current financials.”However, we believe the company may command a premium valuation compared to India’s other internet tech peers, driven by its stronger unit economics, premium service mix and deeper supply-side integration. These factors, coupled with its early leadership in a large and underpenetrated services market, position it for a scalable and profitable growth trajectory,” said Mehta Equities.The offer is a mix of Rs 472 crore fresh issue and an offer-for-sale worth Rs 1,428 crore by existing investors. The price band has been fixed at Rs 98–103 per share.

Retail investors can apply with a minimum lot size of 145 shares, which translates to around Rs 14,935 at the lower end of the band. Employees will get a Rs 9 discount per share. The IPO allotment is scheduled for September 15, while listing on the BSE and NSE is set for September 17.