Urban Company’s ₹1,900 Crore IPO to Provide Higher Returns to Early Investors

Urban Company is gearing up for its much-anticipated IPO, with a total issue size of ₹1,900 crore. At the upper price band of ₹103 per share, the company is poised to command a valuation of approximately ₹15,000 crore (around $1.7 billion). This landmark listing not only cements Urban Company’s position in the consumer internet space but also delivers handsome returns for its early and late-stage investors.

Early Investors Reap Multi-Bagger Gains

Elevation Capital, one of the earliest investors, stands to make a 19x return on its 10.84% stake, now valued at ₹1,626 crore. With a low average cost of acquisition (CoA) of ₹5.39 per share, the fund is set for a substantial payday. Meanwhile, Accel India emerges as the biggest gainer in terms of multiples; its 10.51% stake, now worth ₹1,576 crore, was acquired at an average of just ₹3.61 per share, translating into an impressive 28x paper return as per the draft red herring prospectus (DRHP).

Late-Stage Investors Also Cash In

Vy Capital, which entered at a CoA of ₹20.4 per share, will see its 11.8% holding valued at approximately ₹1,770 crore, a solid 5x return. Steadview Capital and Prosus, each holding a 6.8% stake, will have investments worth around ₹1,020 crore apiece.

In contrast, Tiger Global’s 4.73% stake is valued at ₹710 crore. Despite being a prominent name in tech investing, its later-stage entry at ₹60.25 per share limits its return to a modest 70%, significantly lower than that of earlier investors.

Pre-IPO Activity and Founder Liquidity

The IPO comes on the heels of ₹1,395 crore in pre-IPO secondary transactions executed between late 2024 and early 2025. Founders Abhiraj Singh Bhal, Varun Khaitan, and Raghav Chandra collectively sold shares worth ₹780 crore, primarily to settle obligations related to a 2019 partly paid rights issue.

Simultaneously, early investors, including Accel, Bessemer Venture Partners, and Tiger Global, offloaded ₹615 crore worth of shares to Prosus, Vy Capital, and other funds.

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Urban Company IPO Structure

Urban Company secured approval from SEBI for its IPO earlier this week. Financially, the company posted robust growth in FY25, with revenue rising 38% year-on-year to ₹1,144 crore, and net profits of ₹28.5 crore, a positive sign for prospective investors.

The IPO comprises a fresh issue of ₹429 crore and an offer for sale (OFS) of ₹1,471 crore. Notably, the founders are not participating in the OFS, indicating continued promoter confidence in the business. Urban Company’s listing is expected to be among the first major consumer internet IPOs of FY26 and will likely be closely watched as a bellwether for the sector’s public market appetite.

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