Urban Company, a provider of home and beauty services, made a notable entrance into the stock market, debuting with over a 57 percent premium and closing 64 percent higher than its initial issue price. The company’s shares soared to an intra-day high of ₹179, marking a 74 percent increase, before settling at ₹169 on the Bombay Stock Exchange (BSE), giving it a market capitalization nearing $3 billion. The stock was initially listed at ₹162.25, compared to the issue price of ₹103 per share.
This marks the third initial public offering (IPO) from Dutch investment group Prosus’s portfolio in India, following its investments in Swiggy and Bluestone. Prosus currently holds a 7 percent stake in Urban Company and had recently increased its holding ahead of the IPO.
Ashutosh Sharma, head of India and South-East Asia investments at Prosus, expressed confidence in Urban Company, emphasizing its uniqueness in an industry where many competitors have faltered over the past decade. “At the core, I do believe this is an extremely special company,” he stated, noting the company’s capacity to provide customized services that vary for each customer.
Sharma lauded Urban Company for successfully navigating a challenging sector and highlighted the vast growth potential, stating they are “barely scratching the surface compared to the population of our country.” Prosus initially invested in Urban Company in 2021, progressively increasing its stake since then, and Sharma indicated a willingness to acquire more shares if the opportunity presents itself.
Founded in 2014 by Abhiraj Singh Bhal, Varun Khaitan, and Raghav Chandra, Urban Company aims to deliver a diverse array of services at home, from plumbing and home repairs to cleaning and beauty services. The company reported a 38 percent year-on-year revenue increase in fiscal year 2025, achieving profitability.
Market analysts perceive this listing as a strategic long-term investment aligned with the increasing digital adoption and formalization of the unorganized sector. Bhal remarked, “This IPO is a milestone in our journey, but it is only the beginning of the next phase of growth.” He reaffirmed Urban Company’s commitment to creating long-term value for customers, partners, and investors as it transitions into public markets.
Published on September 17, 2025.
