Urban Company is gearing up for an exciting initial public offering (IPO), as revealed in its recently released Draft Red Herring Prospectus (DRHP). This doorstep home solutions provider has made headlines for its substantial equity sales over the past six months, totaling an impressive Rs 1,395 crore.
Founders and Investors Cashing In
The trio behind Urban Company—Abhiraj Singh Bhal, Raghav Chandra, and Varun Khaitan—have been actively selling shares, generating Rs 780 crore from September to March. Key investors, including Tiger Global, Accel, and Bessemer India, also joined the selling spree, offloading shares valued at Rs 615 crore during the same timeframe.
- Founders’ Equity Sale: Rs 780 crore
- Investors’ Equity Sale: Rs 615 crore
The buyers stepping in to acquire these equities include firms like VY Capital, Prosus, Arohi Seed, and Dharana Capital.
Significant Gains for Early Investors
In the upcoming IPO, early backers such as Accel India, VY Capital, and Bessemer India stand to reap substantial rewards. Collectively, they could gain up to Rs 1,471 crore by divesting their shares during this IPO.
What’s interesting is the varied returns these investors will see, depending on when they entered the company. For instance, Tiger Global made its investment later at a price of Rs 60.25 per share, whereas Excel India, a pioneer investor, came in at a mere Rs 3.61 per share. This highlights a staggering difference where Accel India’s returns are 16.7 times greater than those of Tiger Global.
IPO Details and Future Plans
Urban Company aims to raise Rs 1,900 crore through its IPO, which includes a fresh issue of Rs 429 crore alongside a sale of shares worth Rs 1,471 crore. The proceeds will be strategically allocated to areas such as marketing, expanding capacity, and enhancing technological innovation.
In the fiscal year 2025’s first three quarters, Urban Company reported revenues of Rs 930 crore and a profit of Rs 27 crore, demonstrating its robust growth trajectory.
As Urban Company prepares for its IPO, it’s clear that the company is poised for a significant leap forward, backed by strong investor confidence and strategic financial planning.
