The company will reportedly issue both new and existing shares in its IPO
To oversee the IPO process, the company has appointed Kotak Mahindra Capital, Goldman Sachs and Morgan Stanley
Ahead of its IPO, its investor Prosus is also planning to double down on its investment in the company reported in October last year
Hyperlocal services startup Urban Company
is reportedly looking to file draft papers for its INR 3,000 Cr initial public offering (IPO) before the end of March.
The company will issue both new and existing shares in its IPO, as per a Mint report, citing sources. However, it added that the company will largely raise primary capital.
To oversee the process, the company has appointed Kotak Mahindra Capital, Goldman Sachs and Morgan Stanley.
Ahead of its IPO, its investor Prosus is also planning to double down on its investment in the company as reported in October last year.
Prosus is looking to inject $30 Mn (around INR 252 Cr) into the hyperlocal services startup Urban Company in a secondary deal, giving a partial exit to Bessemer Venture Partners.
Last year, Urban Company raised INR 400 Cr ($50 Mn) from Bengaluru-based venture capital firm Dharana Capital through a secondary deal, in July. The transaction saw its employees and other shareholders liquidate their shares in Urban Company. The fund raise coincided with Snapdeal cofounders Rohit Bansal and Kunal Bahl’s venture capital (VC) firm Titan Capital’s complete exit from the startup.
The company also formed a joint venture (JV) with SMASCO (Saudi Manpower Solutions Company) to roll out a new home services platform in Saudi Arabia in October last year.
On the financial front, the company trimmed its losses by 70% in the financial year 2023-24 (FY24).
Urban Company posted a loss before tax of INR 93 Cr in the financial year 2023-24 (FY24), down 70% year-on-year from INR 312 Cr a year ago. The company saw its operating EBITDA decline to INR 116 Cr in FY24 as against INR 297 Cr a year ago.
In the first quarter (Q1) of the ongoing fiscal year (FY25), Urban Company clocked a revenue of INR 281 Cr.
