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Urban Company IPO Review | Urban Company IPO GMP, Business and More.

Convenience and comfort are everything in today's world. Be it a faulty air-conditioner, plumbing or electricity issues, or needing salon services before a wedding, most of us simply open an app and get everything done with just a tap from the comfort of our homes. One such company that has become an integral part of our lives is Urban Company, which is now coming up with its IPO. Urban Company is a tech-driven, full-stack online service marketplace that offers a wide range of home and beauty services such as cleaning, pest control, appliance repairs, cosmetics, and salon at home. Along with services, it has also launched several products including water purifiers and electronic door locks under its Native brand. In this article, we will take an in-depth look at Urban Company's IPO details, business overview, financials, strengths, weaknesses, and GMP.

Published August 08, 2025.

Urban Company Importance in Modern World.

The modern world thrives on convenience and comfort. Whether it’s a broken air-conditioner, plumbing issue, electrical repair, pest control, or even salon services before a wedding, consumers now rely on apps that provide all these services at home. One such name that has become a household brand is Urban Company. The company is now coming up with its much-awaited IPO in September 2025.

Published March 18, 2024.

IPO Details of Urban Company.

IPO Size: ₹1,900 crore (Fresh issue of ₹472 crore + Offer for Sale of ₹1,428 crore)
IPO Opening Date: September 10, 2025
IPO Closing Date: September 12, 2025
Price Band: ₹98 to ₹113 per share
Lot Size: 145 shares per lot
Minimum Investment (Retail):
- At ₹98 = ₹14,210
- At ₹113 = ₹14,935
Allotment Date: September 15, 2025
Listing Date: September 17, 2025
Use of Proceeds from Fresh Issue:
- ₹100 crore for technology development & cloud infrastructure
- ₹75 crore for office lease payments
- ₹90 crore for marketing activities
- Balance for general corporate purposes

Business Overview of Urban Company.

Urban Company is a technology-driven, full-stack online services marketplace that connects customers with service professionals. As of June 30, 2025, the company has expanded to 51 cities across India, UAE, and Singapore.

Business Segments:

India Consumer Services:
- Beauty services (Salon at home, grooming, massage therapy)
- Home services (cleaning, pest control, handyman, electrician, plumber, appliance repair)
Native Brand (Products):
- Water purifiers and electronic door locks sold directly to consumers
International Business:
- Operations in UAE and Singapore with growing demand

The company operates in India’s home services market worth ₹5,100–₹5,210 billion in FY2025, expected to grow at 10–11% CAGR till 2030.

Strengths of Urban Company.

1.Multi-Category Hyperlocal Platform with Network Effects:

Divides each city into micro-markets, reducing travel time for professionals and ensuring faster service for customers
Professionals earn 30–40% higher incomes compared to peers, attracting more talent through referrals

2.Strong Brand Reputation and Customer Trust:

Most searched online home services brand in India (Jan 2024 – Mar 2025)
High customer loyalty – consumers from FY2018 increased their spending capacity by 1.75x by FY2025

3.Robust Technology and Innovation:

Uses data science and machine learning for demand management, resource allocation, and quality monitoring
Developed tools like diagnostic kits for appliance repair and foam jet pumps for AC servicing

4.Improving Profitability and Operational Efficiency:

Adjusted EBITDA margin in India Consumer Services improved from -9.72% in FY2023 to +3.3% in FY2025

Weaknesses and Risks.

1.Past Losses:

Despite FY2025 profit, the company incurred significant losses earlier. Q1 FY2026 EBITDA was still negative at ₹4.79 crore.

2.High Competition:

Faces strong competition from traditional vendors and other online players. This can pressure pricing and increase marketing costs.

3.Dependence on Service Professionals:

Difficulty in retaining skilled professionals could impact service quality and customer satisfaction.

4.Limited Track Record in New Business Lines:

Native products and InstaHelp offerings are relatively new, making performance predictability difficult.

5.Legal and Regulatory Risks:

- Pending indirect tax proceedings worth ₹35.87 crore
- Civil suit in Delhi High Court alleging patent infringement for its water purifiers

Financial Analysis of Urban Company.

Urban Company’s revenue and profitability have improved significantly in the last three years.

Revenue from Operations:

FY2023: ₹636.6 crore
FY2024: ₹828.02 crore
FY2025: ₹1,144.47 crore

Profitability:

FY2023 & FY2024: Losses
FY2025: Profit of ₹239.77 crore (largely due to ₹21.21 crore deferred tax credit)

Segment Performance:

- India Consumer Services: Adjusted EBITDA margin improved to 9.98% in FY2025
- Native Brand Products: Revenue grew from ₹3.81 crore in FY2023 to ₹16.62 crore in FY2025, but still loss-making
- International Business: Revenue increased to ₹147.05 crore in FY2025, losses narrowing steadily

Cash Flow:

FY2023: -₹237.8 crore (negative)
FY2024: -₹85.58 crore (negative)
FY2025: +₹54.56 crore (positive operating cash flow)

Key Q1 FY2026 Highlights (June 30, 2025):

Profit After Tax: ₹6.94 crore
Exceptional Loss: ₹9.05 crore inventory destroyed in warehouse fire

Grey Market Premium (GMP)

The Urban Company IPO GMP is showing some positive interest in the grey market. However, investors should note that GMP is purely speculative and does not guarantee listing gains. The final listing price will depend on market sentiment, subscription demand, and overall investor appetite.

Conclusion

Urban Company is a fast-growing tech-enabled marketplace with strong brand equity, innovative technology, and improving profitability. Its India consumer services segment is showing sustainable profitability, while new business lines and international markets are still in investment mode.

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Urban Company IPO Review | Urban Company IPO GMP, Business and More.

Urban Company Importance in Modern World.

IPO Details of Urban Company.