Urban Company, India’s leading home services marketplace, has created a landmark moment on Dalal Street with its ₹1,900 crore initial public offering (IPO) subscribed nearly 104 times. This makes it the most oversubscribed public issue among new-age Indian startups, reflecting overwhelming investor confidence in its business model and growth potential.
IPO Subscription Rush and Investor Confidence
The IPO received bids worth over ₹1.9 lakh crore against its issue size, attracting strong demand across all investor categories. Qualified Institutional Buyers (QIBs) and High-Net-Worth Individuals (HNIs) led the surge, signaling robust trust in Urban Company’s future. Day-wise subscription data over the three-day bidding period shows accelerating interest, with QIB subscription reaching 28.61x, Retail Individual Investors (RIIs) 30.49x, and Non-Institutional Investors (NIIs) an impressive 55.01x, culminating in an overall 36.13x subscription rate on the final day.
Urban Company issued 184.47 million shares, allocating about 30% to QIBs, 15% to NIIs, and 10% to RIIs, with the remaining shares reserved for anchor investors and employees.
Read this: IPO Bound Urban Company Wins ET Startup of the Year 2025 Award
Company Overview and Financial Performance
Founded in 2014 by Abhiraj Bhal, Varun Khaitan, and Raghav Chandra, Urban Company has rapidly scaled as the go-to platform for beauty, wellness, and home repair services, catering to millions of households across India.
Financially, Urban Company reported significant growth in FY25, with operating revenue rising 38% year-on-year to ₹1,144.5 crore. The company swung into profitability with a net profit of ₹240 crore, a sharp turnaround from losses of ₹93 crore in FY24, aided partly by a ₹211 crore deferred tax credit. Even excluding this credit, the company posted a pre-tax profit of ₹28.6 crore, showcasing improving operational efficiency and scale.
Proceeds from the fresh issue of ₹472 crore will be directed towards technology development, cloud infrastructure, lease payments, marketing, and general corporate purposes.
Comparison with Other New-Age IPOs: Nykaa, Zomato, Mamaearth
Urban Company’s IPO oversubscription dwarfs previous records set by prominent startups:
- Nykaa: Subscribed 82x in its 2021 IPO, raising around ₹5,352 crore, with a valuation of approximately ₹53,204 crore. Nykaa, a beauty and wellness product marketplace, is notable for being profitable at listing.
- Zomato: Achieved a 38x subscription in 2021, with an IPO size of ₹9,375 crore. As a food delivery and restaurant discovery platform, Zomato’s shares surged on listing but faced volatility post-IPO.
- Mamaearth: Had a 7.6x subscription in 2021 during its smaller IPO in the personal care space.
Urban Company’s exceptional oversubscription speaks volumes about investor optimism in consumer-focused, tech-enabled service platforms amid India’s growing middle-class economy.
Urban Company IPO Pricing and Listing Outlook
Priced in a band of ₹98 to ₹103 per share, with a minimum lot size of 145 shares, the IPO is expected to list on BSE and NSE by September 16-17, 2025. Grey market premiums indicate a listing price estimate near ₹146 per share, suggesting a potential 42% gain on debut.
Future Outlook and Market Position
Urban Company aims to leverage IPO proceeds to deepen technology integration and geographic expansion, building on a strong partner base and diversified service portfolio. Its rapid scale, profitability trajectory, and wide investor enthusiasm position it uniquely among India’s startup ecosystem leaders as it enters public markets.
