Urban Company, one of India’s most prominent home services startups, has made a bold shift in its much-anticipated IPO strategy. According to recent filings with the Registrar of Companies (RoC), the Gurugram-based firm has received shareholder approval to raise up to ₹528 crore via an initial public offering—significantly lower than its earlier target of ₹3,000 crore.
The decision to scale back by over 80% comes amid fluctuating market conditions and global economic uncertainty. Despite the downsized raise, the IPO will include an offer-for-sale (OFS) component, giving early investors a chance to partially exit. Urban Company is working with Kotak Mahindra Capital, Goldman Sachs, and Morgan Stanley to manage the issue, with a draft red herring prospectus expected soon.
The company recently rebranded itself as Urbanclap Technologies India Ltd., marking its transition to a public limited entity. Currently operational in over 60 cities across India and abroad, Urban Company clocks 2.2 million monthly orders with an average ticket size of ₹1,290. In FY24, it reported ₹827 crore in revenue with a 70% reduction in net loss.
With backing from Prosus and Dragoneer, Urban Company has raised over $450 million to date and was last valued at $2.5 billion.