Urban Company—India’s leading tech-enabled marketplace for home and beauty services—is opening its mainboard IPO in September 2025. If an application is being considered, here is a concise, reader-friendly breakdown of key dates, price band, lot size, business model, financial context, strengths, risks, and how to apply so decisions are quick and confident.
Key IPO Details
- IPO dates: September 10–12, 2025; anchor on September 9, 2025
- Price band: ₹98–₹103 per share; face value ₹1
- Issue size: ₹1,900 crore (Fresh issue ₹472 crore + OFS ₹1,428 crore)
- Lot size: 145 shares; minimum retail outlay ₹14,935 at upper band
- Allocation: QIB 75%, NII 15%, Retail 10%
- Allotment/listing: Allotment Sep 15; refunds/demat Sep 16; listing Sep 17 on BSE & NSE
- Lead managers/registrar: Kotak Mahindra Capital, Morgan Stanley India, Goldman Sachs (India), JM Financial; registrar MUFG Intime India
What the Company Does
Founded in 2014 (formerly UrbanClap), Urban Company connects customers with vetted service professionals for home cleaning, appliance repair, plumbing, electrical, carpentry, pest control, at-home beauty and grooming, dermat-backed skincare, spa and wellness, painting, and more. The platform operates in 51 cities across India and internationally in the UAE and Singapore, supported by training, certification, tools, and quality control.
Business Model and Revenue Drivers
- Commission take rate on each service order, plus partner subscriptions and sale/financing of tools and consumables.
- Growing categories like AC servicing, appliance repair, and premium beauty services support repeat usage and higher ticket sizes.
- Asset-light marketplace model with standardized service protocols and ratings to improve consistency and trust.
Financial Context
Independent analyses indicate strong FY25 growth with a first-ever full-year profit, driven by operational leverage and better partner utilization. Revenue rose about 38% YoY, EBITDA margin turned positive, and PAT was reported positive, aided partly by deferred tax credit; core profitability also improved. Cash flow from operations turned positive in FY25 versus negative a year earlier. Investors should review the RHP for final, audited numbers.
Use of Proceeds
- Technology and cloud infrastructure (around ₹190 crore)
- Lease rentals (around ₹75 crore)
- Marketing and brand spends (around ₹90 crore)
- General corporate purposes
The remainder of the offer is OFS by existing shareholders.
Strengths
- Category leadership and brand recall in on-demand home and beauty services.
- Asset-light, scalable model with standardized training and quality checks.
- High repeat usage and customer satisfaction underpin durable demand.
- International presence across UAE and Singapore complements India scale.
Key Risks
- Regulatory uncertainty around gig worker policies and compliance obligations that may affect cost structures.
- Category competition from local/regional players and offline incumbents, pressuring take rates or marketing expenses.
- Service quality control at scale and partner supply constraints in peak seasons.
- Sensitivity to discretionary spending cycles in beauty/home services.
Valuation Checks Before Applying
Compare with consumer-tech and marketplace peers on:
- Growth, contribution margin, and EBITDA/PAT trajectory.
- CAC vs LTV, repeat usage, and cohort retention.
- Cash conversion, working capital profile, and reliance on marketing to sustain growth.
- Post-issue valuation (P/S, EV/Sales, EV/EBITDA) versus profitability path and competitive moat.
Cross-check disclosures in the RHP/offer documents.
How to Apply
- Apply via ASBA (net banking) or UPI broker apps from Sep 10–12; consider bidding at cut-off if unsure.
- Minimum lot: 145 shares; approve the UPI mandate promptly to avoid rejection.
- Track allotment on MUFG Intime’s portal using PAN/Application/DP details; listing likely on Sep 17.
Bottom Line
Urban Company brings a scaled, asset-light services marketplace to public markets with improving profitability and strong brand equity. The fully priced issue includes a sizable OFS; weigh the growth runway and operating leverage against regulatory and competitive risks. Position size according to risk appetite and time horizon.
Given the competitive nature of the home services sector, one key risk that stands out to me is how Urban Company plans to differentiate itself long term. While the tech-enabled platform is definitely a plus, service quality consistency will be key in maintaining customer trust and loyalty.
While Urban Company’s tech-driven model is impressive, it will be interesting to see how they handle the growing competition in the home service market. The scalability challenge is real, especially in new international markets, but their strong brand and focus on quality could help them stay ahead.
Super useful, all-in-one IPO guide. The way you laid out the Sep 10–12, 2025 timeline, ₹98–₹103 price band, 145-share lot size, and the ₹1,900 crore split (₹472 cr fresh + ₹1,428 cr OFS) makes it easy to understand the offer at a glance. I also appreciate the balanced section on risks—especially service quality/refund exposure, gig-work regulatory scrutiny, and off-platform transactions. If possible, could you add one quick example showing the exact steps to apply via UPI/ASBA with a “cut-off price” bid?