For investors, it can be quite challenging to decide if the Urban Company IPO is a good investment. If you are unsure and still thinking about whether to apply or skip this IPO, don’t worry. In this article, we present the top key factors and a detailed review of the Urban Company IPO. This will help you analyze the strengths, risks, and financial details of the Urban Company, previously known as UrbanClap, improving your investment decision.
About Company
Incorporated in December 2014, Urban Company Limited is one of the prominent tech-based online marketplaces that provide home and beauty services. The company has a presence across 51 cities that include India, the UAE, and Singapore, excluding Saudi Arabia, where it works through a joint venture.
Urban Company allows customers to easily book various services, including cleaning, pest control, electrician, plumbing, carpentry, appliance servicing and repair, on-demand home-help assistance, painting, skincare, hair grooming, and massage therapy. All of these services are offered by trained professionals anytime, anywhere, to meet the customer’s requirements. The company focuses on offering a quality, reliable, and standardized service experience. The company also offers training, tools, financing, insurance, and branding tools to professionals in order to help them improve their quality and income. The company had an average of 54,347 active service professionals each month.
Strengths
- Urban Company is one of the reputed companies that focuses on quality, reliability, and is trusted by customers.
- The company consists of a strong, dedicated, experienced team of professionals with in-house training, giving them the right tools and materials.
- Developed a reputation for inventing innovative products for service professionals in order to enhance the consumer experience.
- Urban Company is run by an experienced board and professional management team who have over 10 years of experience.
Weaknesses
- Earlier, the company had faced net losses and negative operating cash flow. If the company fails to control the losses or grow its revenue, it can negatively affect the business, cash flow, and overall financial performance.
- The company has built a reputation for offering customers a good experience; if it is unable to continue to do so, it can badly impact the business performance and cash flow.
- Not being able to attract and keep the service professionals on its platform can negatively affect the business.
- The business generated a reputation of being one of the leading companies under the brand name “Urban Company”. Not being able to maintain the reputation can impact the brand growth, reputation, cash flows, and overall performance.
Urban Company IPO Review
| Reviewer | Recommendation |
| Lakshmishree Investment & Securities Ltd | Apply |
| DRChoksey Finserv Private Limited | Apply |
| Arihant Capital Markets Ltd | Apply |
| BP Equities (BP Wealth) | Apply |
| Canara Bank Securities Ltd | Apply |
| Capital Market | May Apply |
| ICICI Direct | Neutral |
| Mehta Equities | Apply |
| SMC Global | Neutral |
| Sushil Finance Ltd | Apply |
Urban Company IPO Details
| IPO Open Date: | September 10, 2025 |
| IPO Close Date: | September 12, 2025 |
| Face Value: | ₹1 Per Equity Share |
| IPO Price Band: | ₹98 to ₹103 Per Share |
| Issue Size: | Approx ₹1900 Crores |
| Fresh Issue: | Approx ₹472 Crores |
| Offer for Sale | Approx 13,86,40,776 Equity Shares |
| Registrar | MUFG Intime India Pvt. Ltd. |
| IPO Lead Managers | Kotak Mahindra Capital Co.Ltd. Morgan Stanley India Co.Pvt.Ltd. Goldman Sachs (India) Securities Pvt.Ltd. JM Financial Ltd. |
| Basis of Allotment | September 15, 2025 |
| IPO Listing Date: | September 17, 2025 |
| Listing | BSE, NSE |
Financial Performance Trend Details
| Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
| Revenue from Operations | 11,444.65 | 8,280.18 | 6,365.97 |
| EBITDA | 120.91 | (1,190.12) | (2,976.92) |
| EBITDA Margin (%) | 0.37% | (4.64)% | (14.33)% |
| Net Profit after Tax | 239.77 | -92.77 | -312.48 |
| Return on Net Worth (%) | 36.20% | 25.65% | 24.84% |
| Reserves and Surplus | 2,646.12 | 2,404.69 | 2,402.82 |
Key Indicators
| KPI | Values |
| RoNW | 13.35% |
| Price to Book Value | 8.27 |
Promoters & Track Records, if any
- Abhiraj Singh Bhal is the Chairperson, Managing Director, and Chief Executive Officer of the Company, responsible for overall strategy, business growth, market expansion, operations, and investor relations holds 97,762,500 Equity Shares in the company.
- Raghav Chandra is the Executive Director and Chief Technology and Product Officer of the Company, responsible for product technology, design, and automation holds 97,762,500 Equity Shares in the company.
- Varun Khaitan is the Executive Director and Chief Operating Officer of the company, responsible for business operations across the services and products business in India and overseas holds 97,762,500 Equity Shares in the company.
Expansion
- The proceeds raised from the fresh issue will be utilized for the expenditure on new technology development and cloud infrastructure.
- Some funds will be used for lease payments for the offices.
- Many funds will be utilized towards marketing activities.
- Lastly, the remaining funds will be used for the company’s general corporate purposes.
Urban Company IPO – Should You Apply or Not?
According to the Redseer Report, India’s home service industry shows a huge market potential. As the home service industry is still unorganized and offline, the Urban Company offers an excellent opportunity by giving them reliable, high-quality, and standardized services.
The Consumer Excellence, Service professional empowerment, technology-enabled platform, and improved financial performance make this IPO an attractive choice to invest in. As of September 9, 2025, the Urban Company IPO GMP is ₹36, showcasing an excellent listing of around 30 – 35%. A cautious investor must apply for this IPO only after analyzing the company’s financials, cash flow, weaknesses, and strengths first. Investors who have a good risk appetite can apply for this IPO for long-term growth.
Please Note:
This article is written using information from the company’s RHP (Red Herring Prospectus) data and online sources. If you have any queries, kindly contact the IPO Watch Team.
