Urban Company Cuts IPO Size, Files for Rs 1,900 Cr

Urban Company, backed by Tiger Global and Bessemer Venture Partners, has filed draft papers for an initial public offering (IPO) aiming to raise Rs 1,900 crore ($223 million). The IPO includes a fresh issue of Rs 429 crore and an offer for sale of up to Rs 1,471 crore by existing investors, with founders not participating in the sale. Major early investors Accel India and Elevation Capital are offloading significant stakes. Over half of the fresh issue proceeds will support technology development, with the rest allocated to office leases and marketing. The company, present in 59 cities across India, the UAE, and Saudi Arabia, recently reported a pre-tax profit for the nine months ending December 2024 after prior losses. Urban Company has trimmed its IPO size from an earlier planned Rs 3,000 crore due to ongoing cash generation, and the issue is managed by Kotak Mahindra Capital, Morgan Stanley, Goldman Sachs, and JM Financial.