Urban Company IPO: Should you apply?

Summary: Thinking of applying for the Urban Company IPO? Read our analysis of the company’s past track record, financials, strengths and risks before making an investment decision. Urban Company IPO (initial public offering) will open for subscription on September 10, 2025 and close on September 12, 2025. The online home services provider aims to raise Rs 472 crore from a fresh issue, along with an offer-for-sale of up to Rs 1,428 crore. Below is a breakdown of the company’s business, financials, strengths, risks and valuation to help you make an informed decision. What the company does Urban Company is a technology-driven marketplace offering home and beauty services across 51 cities in India, the UAE and Singapore (as of June 2025). Its platform connects consumers to trained, independent professionals for services such as cleaning, plumbing, appliance repair, pest control, painting and grooming. The company has also expanded into home solutions under the ‘Native’ brand and launched InstaHelp for on-demand assistance. Track record and valuation Over the last two years, Urban Company’s revenue has grown by over 34 per cent per annum, reaching Rs 1,145 crore in FY25. This can be attributed to a rise in net transaction value, which grew to Rs 3,271 crore and the number of annual transacting customers that jumped to 6.8 million. It also reported a net profit of Rs 240 crore in FY25, owing to deferred tax assets and an increase in other income. This marked a notable shift from the losses experienced in the preceding two years. However, earnings margins remain negative while debt has steadily increased. At the upper end of the price band (Rs 103), the company is valued at nearly 62 times its FY25 earnings and 6.5 times its book value. It has no listed peers for comparison. Urban Company IPO details Total IPO size (Rs cr) 1,900 Offer for sale (Rs cr) 1,428 Fresh issue (Rs cr) 472 Price band (Rs) 98-103 Subscription dates September 10-12, 2025 Purpose of the issue To scale up operations and improve infrastructure Post-IPO M-cap (Rs cr) 14,790 Net worth (