Rachit Prints Receives SME Approval for ₹19.5 Crore IPO...
19 Jun, 2025
The Securities and Exchange Board of India (SEBI) received the Draft Red Herring Prospectus (DRHP) from Urban Company, the leading home services platform in India, on April 28, 2025. The company plans to raise ₹1,900 crore through an initial public offering (IPO).
IPO Overview and Specifics
The IPO comprises an offer for sale (OFS) of ₹1,471 crore by existing investors, including Accel India, Elevation Capital, Bessemer India Capital Holdings II Ltd, Internet Fund V Pte. Ltd, and VYC11 Ltd, in addition to a fresh issuance of ₹429 crore. Both the BSE and the NSE must list the equity shares. The issue's book-running lead managers are Kotak Mahindra Capital Company Limited, Morgan Stanley India Company Private Limited, Goldman Sachs (India) Securities Private Limited, and JM Financial Consultants Private Limited.
Use of Funds
The new issue's net proceeds would be used for brand building (₹80 crore), office lease (₹70 crore), new technology and cloud infrastructure development (₹190 crore), and other company costs.
Financial Outcomes
For the nine months ending in December 2024, Urban Company reported operating revenue of ₹846.02 crore, which was 40.75% more than the ₹600.90 crore earned during the same period the previous year. The business also made ₹242.6 crore during that period, which was a turnaround after a history of steady losses.
Overview of the Company
Urban Company was founded in 2014 and offers a wide range of home and beauty services, including cleaning, plumbing, pest control, carpentry, electrical work, appliance repair and maintenance, painting, skincare, hair care, and therapeutic massage. It operates in 59 locations, 48 of which are in India and a few more that are situated in Singapore, the Kingdom of Saudi Arabia, and the United Arab Emirates.
Global Activities
Urban Company said in its DRHP that it will close Urban Company Arabia for Information Technology (UCAIT), its step-down subsidiary in Saudi Arabia, due to financial unviability. It has moved its activities in Saudi Arabia to a joint venture with Waed Khadmat Al-Munzal for Marketing Co., which was started in October 2024 with Saudi Manpower Solutions Company (SMASCO).
In Conclusion
An important turning point in Urban Company's growth history was its public listing. The firm is well-positioned to use the money acquired from the IPO to develop further and keep pushing for technical advancement because it had a great financial performance for the most recent fiscal year and offers a wide variety of services. As Urban Company moves forward with its first public offering, investors and market experts will be closely monitoring the proceedings.
