Source: Money Control
On opening day, the IPO was fully subscribed
Urban Company’s ₹1,900 crore initial public offering (IPO) was fully subscribed on day one of bidding, September 10, 2025. The issue received strong interest from all sectors: retail investors, institutional investors, and high-net-worth individuals. Prior to the IPO, Urban Company had raised ₹854 crore from a number of anchor investors including Goldman Sachs, GIC, SBI Mutual Fund, and ICICI Prudential.
The company follows the break-even point
Urban Company’s Chairman and CEO Abhiraj Singh Bhal stated the company has generally achieved a break-even point and will now focus on margin improvement. The company’s main business, which operates in India, is already achieving steady profits with double-digit operating margins, but the new businesses, InstaHelp and Native still need heavy investment. Bhal stated that as the company becomes bigger it will become more profitable over the medium term as the company’s efficiency and scale will help it.
Urban Company posted its first annual profit of ₹240 crore in FY25, which included a tax credit of ₹211 crore. So pre-tax profit was ₹28 crore. Revenues were up 38 percent, to ₹1,145 crore, and adjusted EBITDA was up to 12 crore, from an adjusted EBITDA loss of ₹373 crore in FY22.
Concentrate on margins
Bhal provided the following analogy: the next growth curve will be more about profitability, not turnover. Over the time that we have been partnered as well, we have already improved the company’s adjusted EBITDA margins from 3% of transaction value in FY24 to 4% of transaction value in the first quarter of FY26.
Big market opportunity
The organised home services sector in India is estimated to be worth more than ₹5 lakh crore. Urban Company has less than 1% of this market size. With operations across 47 Indian cities as well as UAE, Singapore and Saudi Arabia, Bhal sees huge opportunity for growth both in new cities and verticals and described this phase as “Day One”.
Upside for early investors
Urban Company is valued at around ₹15,000 crore at the top of the ₹98–103 price band. Early investors stand to get good returns: Accel India will make about 29 times its investment, Elevation Capital 19 times, and Bessemer about 14 times. Tiger Global will see a smaller return.
The road ahead
Urban Company is set to list on Dalal Street on September 17. The company has also committed to a more detailed financial reporting that will include segment-wise growth and margin data, in its first quarterly results post-listing. With solid IPO demand, strengthened financials, and a large, untapped market, the debut of Urban Company is being carefully evaluated by investors.
