Urban Company files DRHP for Rs 1,900 crore IPO, earmarks Rs 80 crore for marketing biz
From the raised money, Urban Company will be allocating Rs 190 crore for the development of new technology and cloud infrastructure, Rs 70 crore towards lease payments for office spaces, Rs 80 crore for marketing initiatives
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Beauty and home care service provider, Urban Company is set to launch an IPO soon. The Gurugram-based startup has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) to raise Rs 1,900 crore from the stock market. It has reduced the total size of its IPO from the previously planned Rs 3,000 crore.
As per the DRHP details of the Urban Company, it has intended to raise Rs 429 crore by issuing fresh shares while existing investors intend to offload stakes worth Rs 1,471 crore through an offer for sale (OFS).
From the raised money, Urban Company (previously known as UrbanClap Technologies) will be allocating Rs 190 crore for the development of new technology and cloud infrastructure--the amount to be deployed in three tranches: Rs 42 crore in FY2026, Rs 74 crore in FY2027, and Rs 74 crore in FY2028.
Further, the service platform has earmarked Rs 70 crore towards lease payments for office spaces, Rs 80 crore for marketing initiatives, and the remaining funds for general corporate purposes.
Kotak Mahindra Capital Company, Morgan Stanley India Company, Goldman Sachs (India) Securities, and JM Financial are the book-running lead managers.Notably, founders Abhiraj Singh Bhal, Varun Khaitan, and Raghav Chandra, will not be selling any shares in the IPO.
