Urban Company IPO to hand Accel, Elevation bumper returns on Dalal Street

Urban Company’s Rs 1,900 crore IPO is set to be a milestone for the Gurugram-based home services marketplace and a big payday for its investors. At the upper price band of Rs 103 per share, the company is valued at around Rs 15,000 crore ($1.7 billion). This brings multi-bagger returns for its earliest backers while offering sizeable liquidity to late-stage funds.

Elevation Capital holds the stake at 10.84%, valued at about Rs 1,626 crore. With an average cost of acquisition of Rs 5.39 per share, the fund is sitting on a 19x paper return. Accel India holds a 10.51% stake worth Rs 1,576 crore. The venture firm has an average CoA of just Rs 3.61 per share, making it the biggest winner by multiples with a 28x return, as per DRHP.

Vy Capital, which invested later at a CoA of Rs 20.4, will also pocket strong gains. Its 11.8% stake translates into about Rs 1,770 crore, giving it a 5x return. Steadview Capital and Prosus, both holding 6.8% each, will see their stakes valued at about Rs 1,020 crore. While their entry costs are not disclosed in the DRHP, the absolute value of their holdings makes them among the largest beneficiaries on paper.

In sharp contrast, Tiger Global’s 4.73% stake is valued at about Rs 710 crore. However, with an average entry cost of Rs 60.25 per share, the New York-based investor will achieve only a 70% return, which is modest compared to the early backers.

The upcoming listing builds on Rs 1,395 crore in pre-IPO secondary deals executed between late 2024 and early 2025. Founders Abhiraj Singh Bhal, Varun Khaitan, and Raghav Chandra sold shares worth about Rs 780 crore, largely to settle dues from a 2019 partly-paid rights issue. Early backers Accel, Bessemer, and Tiger Global also offloaded shares worth Rs 615 crore to Prosus, Vy Capital, and others ahead of the public issue.

The company has also received SEBI nod for its IPO earlier this week. On the financial front, Urban Company recorded a 38% year-on-year increase in its revenue to Rs 1,144 crore in FY25, with profits of Rs 28.5 crore. 

The IPO will see a fresh issue of Rs 429 crore and an offer for sale of Rs 1,471 crore, with the promoters not participating in the share sale. Urban Company’s market debut will be closely watched as one of the first large consumer internet listings in FY26.