Urban Company’s Record-Breaking IPO Debut: India’s Largest Home Services Platform Soars 58% on Public Markets
India’s largest home services platform, Urban Company, made a triumphant entry into public markets on Wednesday, surging 58% above its issue price. The Gurugram-based startup, which facilitates various at-home services from beauty treatments to appliance repair, debuted on the Mumbai-based National Stock Exchange at approximately ₹162.25 per share ($1.84), up from its initial public offering (IPO) price of ₹103. The IPO, launched a week prior, was oversubscribed more than 100 times, demonstrating significant investor interest both from institutions and retail sectors.
Upon its public listing, Urban Company provided partial exit opportunities for its early investors. Accel realized the largest gains, followed by Elevation Capital and Tiger Global. With an average investment cost of ₹3.61 per share, Accel stands to reap potential profits close to 45x. Elevation, having invested at ₹5.39 per share, is poised for approximately 30x returns, while Tiger Global anticipates more modest gains, reportedly around 1.3 times their cost basis.
Over the past decade, Urban Company’s success can be attributed to its transformation of traditionally unorganized household services in India—encompassing cleaning, plumbing, electrical work, massage, and beauty treatments. By digitalizing these offerings through its app, the company has created an on-demand platform that lacked standardization within the market. Consequently, Urban Company maintains a near monopoly as the largest organized player in this domain.
Prior to the $217 million public offering, Urban Company raised $97 million from anchor investors, including Goldman Sachs, Dragoneer Investment Group, Norges Bank, GIC, Nomura Amundi Funds, Steadview Capital, Prosus, and WhiteOak. Domestic mutual funds such as SBI Mutual Fund, ICICI Prudential, Nippon, and UTI also participated in the pre-IPO secondary round.
Launched in November 2014 as UrbanClap by Abhiraj Singh Bhal, Varun Khaitan, and Raghav Chandra, Urban Company currently operates in 59 cities across four countries—India, the UAE, Singapore, and Saudi Arabia, with India serving as its primary market. The company aims to expand its presence to over 200 cities by the end of fiscal year 2030, increasing the reach of its household services.
Upon completion of the public offering, Urban Company plans to allocate a significant portion of the net proceeds towards technology development and cloud infrastructure, as well as lease payments for office spaces and marketing initiatives.
