SBI Mutual Fund, Permira to Invest ₹450 Crore in Urban Company Ahead of IPO

Urban Company is gearing up for its public debut later this year, and key institutional investors are already stepping in. In a major development ahead of the Gurugram-based startup’s IPO, SBI Mutual Fund, Permira, and a few other investors are set to pick up ₹450 crore worth of shares from early backers via secondary transactions, as per the Moneycontrol report. These transactions, expected to close in the coming weeks, mark a pivotal moment as Urban Company eyes its listing.

Pre-IPO Activity and Valuation Details

As per the news reports, the ₹450 crore investment will come through secondary transactions, with existing investors Accel, Bessemer Venture Partners, Tiger Global, and Elevation Capital offloading a part of their stake. Since these are secondary sales, Urban Company will not receive any direct proceeds.

As per the reports, Urban Company is valued at around $1.8 billion (₹15,500 crore) during this round, a 30% markdown from its last reported valuation of $2.5 billion in 2022. Market experts note that such discounts of 20–30% are common in secondary deals to ensure potential upside for incoming investors. 

IPO Plans and Fund Deployment

Urban Company filed its Draft Red Herring Prospectus (DRHP) in April 2025. The IPO will consist of a fresh issue worth ₹429 crore and an offer for sale of ₹1,471 crore. The fresh issue proceeds will be used to strengthen various facets of the business over the next three years.

₹190 crore is allocated for platform innovation and technology upgrades, including investment in cloud infrastructure and AI-led tools to improve both user and partner experience. ₹70 crore will go towards leasing new and expanded offices in India and overseas. 

Additionally, ₹80 crore is earmarked for brand-building across digital, outdoor and OTT platforms. The rest of the funds will be deployed for general corporate purposes such as working capital and strategic investments, in line with SEBI’s 25% cap on gross proceeds usage.

Urban Company's Financial Performance 

Urban Company has shown a strong financial turnaround in recent years. Revenue from operations grew from ₹437.6 crore in FY22 to ₹637 crore in FY23 and touched ₹828 crore in FY24. Adjusted EBITDA also turned positive for the first time, coming in at ₹9.3 crore during the 9 months ending 31 December 2024, compared to losses of ₹37.4 crore and ₹29.8 crore in FY22 and FY23, respectively.

The company posted a net profit of ₹242.3 crore for the first 9 months of FY24, reversing net losses of ₹514.1 crore in FY22 and ₹312.4 crore in FY23. Notably, this profit was largely supported by a deferred tax credit of ₹215 crore.

Also Read: Tata Capital Launches Roadshows Ahead of ₹17,000 Crore IPO!

Conclusion

Urban Company’s pre-IPO traction and financial resurgence underline its growing strength in the home services space. With backing from SBI MF and Permira, and an IPO lined up, the company plans to invest in technology, global expansion, and strategic brand positioning to unlock long-term value.

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