Urban Company Limited – IPO Review 2025, Analysis and Notes

Recommendation: Neutral

Key Highlights

Company Background

Urban Company is a technology-driven, full-stack online services marketplace offering quality-focused home and beauty solutions across 51 cities in India, UAE, and Singapore, as of June 30, 2025, excluding its joint venture in Saudi Arabia. The platform enables seamless access to services such as cleaning, pest control, plumbing, carpentry, appliance repair, painting, and on-demand home-help, along with skincare, hair grooming, and massage therapy. Expanding into home solutions, Urban Company introduced water purifiers in FY23 and electronic door locks in FY24 under the brand ‘Native’. By combining technology, training, tools, and financial support, Urban Company ensures a standardized, reliable service experience while building trust and delivering value to both customers and professionals.

Market Opportunity

The Indian home services industry represents a vast and underpenetrated opportunity, with a total addressable market (TAM) of ₹5,100–5,210 billion (USD ~60 billion) in FY2025, projected to grow at a CAGR of 10–11% to reach ₹8,400–8,580 billion (USD ~100 billion) by FY2030. Despite this scale, online penetration remains below 1%, compared to over 20% in China and 50% in the US, underscoring significant headroom for digital platforms. Urbanization, rising dualincome households, and increasing preference for convenience are driving adoption. Online full-stack platforms that address structural gaps—such as trust, quality, and transparent pricing—are poised to expand rapidly, with the online market expected to reach ₹105–110 billion (USD ~1.3 billion) by FY2030, growing at 18–22% CAGR

Technology-Driven, Scalable Business Model

Urban Company’s technology-first approach drives efficiency and scalability by integrating discovery, booking, payments, and service fulfillment into a seamless experience. Professionals benefit from training, tools, and transparent earnings, while proprietary algorithms for supply-demand matching, route optimization, and pricing enhance utilization and repeat business. Its asset-light, marketplace-driven model lowers overheads and enables rapid geographic expansion at minimal cost. A strong data-driven feedback loop further refines service quality and customer satisfaction. Combining tech enablement, standardized processes, and scalable operations, Urban Company is well-positioned to capture market share as consumers increasingly adopt trusted, digital-first home service solutions.

Trusted Partner Ecosystem with Skilled Professionals

The key strength of Urban Company lies in its robust partner ecosystem of service professionals, who are central to delivering consistent, high-quality experiences. The company invests significantly in onboarding, skill development, and certification, ensuring standardized service delivery across categories. It also provides tools, consumables, and financing support, enabling professionals to improve productivity and earnings while reducing attrition. Transparent pricing and assured demand foster strong loyalty among partners, enhancing retention and reliability. This trusted ecosystem not only strengthens consumer confidence but also creates high entry barriers for competitors.

Financials

For FY25, Urban Company posted revenue of ₹1,144 crore, up from ₹828 crore in FY24. Adj. EBITDA stood at ₹12.1 crore with a 1.1% margin. The net profit for FY25 was ₹23.9 crore, reflecting a PAT margin of 20.1%. On the valuation front, at the upper price band of ₹103, the IPO is valued aggressively.

Key Risks

Key risks include a history of net losses and negative operating cash flows, coupled with limited operating history in certain business lines such as the Native brand. The company faces intense competition from offline players, while low online penetration across served markets may constrain growth. Additionally, international operations pose regulatory, operational, and cost risks that could adversely impact revenues and profitability.

Issue Highlights

Offer Structure

Lead Book Running Managers

• Morgan Stanley India Company Private Limited

• Kotak Mahindra Capital Company Limited

• Goldman Sachs (India) Securities Private Limited

• JM Financial Limited

Registrar to the Offer

MUFG Intime India Private Limited

Research Analyst

Vinay Kalani
vinay.kalani1@religare.com

Research Team

Ajit Mishra – ajit.mishra@religare.com
Abhijeet Banerjee – abhijeet.banerjee@religare.com
Gaurav Sharma – gauravsharma2@religare.com
Ashwani Harit – ashwani.harit@religare.com
Divya Parmar – divya.parmar@religare.com
Vinay Kalani – vinay.kalani1@religare.com
Rajan Gupta – rajan.gupta1@religare.com

• Author: Religare Broking
• Last Updated: September 9, 2025