Urban Company IPO to Deliver Bumper Returns for Accel and Elevation Capital

Urban Company’s much-awaited ₹1,900 crore IPO is set to deliver massive returns for its early investors, particularly Accel and Elevation Capital. With the company’s valuation at ₹15,000 crore at the upper price band of ₹103 per share, the Gurugram-based home services marketplace marks a significant milestone on Dalal Street.

Urban Company IPO: Early Investors Reap Multi-Bagger Gains

As per news reports, Elevation Capital, holding a 10.84% stake, stands to gain approximately ₹1,626 crore, with an average cost of acquisition at ₹5.39 per share, translating to a 19x return. Accel India, holding 10.51%, will see its ₹1,576 crore stake yield a 28x return, given its entry cost of ₹3.61 per share, making it the biggest winner by multiples.

Returns Across the Investor Spectrum

Vy Capital, a late-stage investor with an 11.8% holding and an entry cost of ₹20.4 per share, is looking at a 5x return with its stake now worth ₹1,770 crore. Steadview Capital and Prosus, each holding 6.8%, will see valuations around ₹1,020 crore. Tiger Global’s 4.73% stake, valued at ₹710 crore, reflects a more modest 70% return, based on its ₹60.25 per share entry price.

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Pre-IPO Deals and Founder Offloads

In the months leading to the IPO, Urban Company executed ₹1,395 crore in secondary transactions. Founders Abhiraj Singh Bhal, Varun Khaitan, and Raghav Chandra sold shares worth ₹780 crore to settle dues from a 2019 partly-paid rights issue. Accel, Bessemer, and Tiger Global offloaded ₹615 crore worth of shares to Vy Capital, Prosus, and others.

Urban Company Financials and IPO Structure

Urban Company reported revenue of ₹1,144 crore in FY25, up 38% year-on-year, with a net profit of ₹28.5 crore. As per news reports, the IPO comprises a fresh issue of ₹429 crore and an offer for sale of ₹1,471 crore. The promoters are not participating in the sale. The company secured SEBI’s nod earlier this week, making this one of the first large consumer internet IPOs of FY26.

Conclusion

Urban Company’s IPO underscores the potential of India's consumer internet sector, offering significant windfalls for early investors. With strong financials, strategic pre-IPO moves, and regulatory clearances in place, the listing is poised to be a landmark event on Dalal Street.

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