About the Business and Industry Size

Urban Company is a pioneering, technology-driven marketplace that connects consumers with top-quality home and beauty service professionals. Operating in 59 cities across India, the UAE, Singapore, and Saudi Arabia, Urban Company offers services including cleaning, plumbing, appliance repair, pest control, beauty, and wellness. The platform also supports service professionals through training, insurance, technology, and brand-building.

The home services sector in India is burgeoning, estimated at around US$97.4 billion by 2029, with steady growth fueled by rising urbanization, higher disposable incomes, and increasing digitization. Urban Company is uniquely positioned as the market leader in this fragmented & highly underpenetrated segment, aiming to expand further into 200 cities in the coming years.

Company Growth and CAGR

Urban Company has witnessed robust growth with revenues rising by 38% year-over-year in FY25 to ₹1,144 crore. They achieved profitability in FY25, reporting a net profit of ₹28.5 crore after years of focused investment in scaling. Their India business alone grew by 24%, supported by rising customer transactions and expanding product offerings, including the recent launch of the 'Native' brand of consumer electronics with rapid revenue growth.

This growth trajectory represents a promising Compound Annual Growth Rate (CAGR), driven by the company’s scalable business model, tech leverage, and expanding market penetration.

Promoters and Their Experience

Founded by Abhiraj Bhal, Varun Khaitan, and Raghav Chandra in 2014, Urban Company’s promoters bring extensive experience in technology and management from elite backgrounds, including IIT and consulting at Boston Consulting Group. Their hands-on leadership has shaped the company’s customer-centric service model and innovative use of technology, helping build a trusted network of over 48,000 background-verified service professionals.

Company Fundamentals

Urban Company operates on a commission model where it charges 20-30% fees on service transactions along with subscription revenues. Their commitment to quality services is supported by rigorous training and support for service professionals, helping ensure a consistent customer experience reflected in an average professional rating of 4.79/5.

Financial Highlights:

• IPO Size: ₹1,900 crores (₹472 crores fresh issue, ₹1,428 crores offer for sale)

• Revenues: ₹1,144 crore FY25 (up 38% YoY)

• Net profit: ₹28.5 crore FY25

• Return on Net Worth: 13.35%

• Fund utilization for technology, infrastructure, marketing, and general corporate purposes

Peer and Ratio Analysis

Urban Company operates in a niche sector with limited direct listed peers but stands out in valuation and growth among digital service marketplaces. Its focus on operational excellence and market leadership offers a competitive advantage compared to traditional service providers.

Key Ratios:

• EPS: ₹1.66 (Basic FY25)

• P/E Ratio: Around 60x based on FY25 earnings (reflecting growth potential)

• Debt-to-Equity: Low, indicating financial prudence

• Improving EBITDA margins signaling operational leverage

Conclusion: Apply for Listing Gains

With a price band of ₹98-103 and a lot size of 145 shares, Urban Company IPO opens on September 10, 2025, and closes on September 12, 2025, with tentative listing expected on September 17, 2025. Given its leadership position, strong fundamentals, attractive growth prospects, and recent profitability, this IPO offers an appealing opportunity for investors eyeing listing gains and medium to long-term growth.

For detailed insights and a visual walk-through of Urban Company IPO, watch the YouTube video here: [Insert YouTube Video Link]