Urban Company Ltd. launched its Rs 1,900-crore initial public offering on Sept 10. With a face value of Rs 1 per share and the upper-end price band of Rs 103, the company is seeking a 100-time valuation of its nominal worth. It's tentative listing date is on Sept 17, according to Chittorgarh.
The home services provider's financial performance over the last three years paints a picture of gradual recovery, but not one that may justify its steep valuation.
The company’s profit before tax stood at Rs 28.55 crore however the total expense itself was Rs 1,223.48 crore with revenue of Rs 1,260.68 crore in financial year 2025. In fiscal 2024 the company reported a loss of 92.73 crore as opposed to a revenue of Rs 928 crore and expense was at Rs 1,020.73 crore. Similarly in fiscal 2023 the company reported a loss of Rs 312.44 crore as opposed to a revenue of Rs 726.24 crore and expense of Rs 1,038.68 crore.
Urban Company's business model is built around gig workers, barbers, electricians, beauticians, and technicians, largely unskilled or semi-skilled labour. In the June 2025 quarter, the company reported 54,347 average monthly active service professionals, up from 50,992 in June 2024.
This disintermediation risk potentially undermine Urban Company's aggregator model and may impede long term customer retention.
The company, in its Draft Red Herring Prospectus said, "We face intense competition across the markets we serve, which may result in reduced demand for services on our platform or reduced number of service professionals signing up for our platform, resulting in a negative impact to our revenues and costs."
It further added that, "If we are unable to attract and retain service professionals on our platform, our platform will become less appealing.”
Sector Lacks Competing Players
Urban Company has operated without serious competition for nearly a decade. Unlike sectors such as quick commerce (Blinkit, Instamart, Zepto), fintech (Paytm, PhonePe, BharatPe), or e-grocery (BigBasket and Tata Neu), the home services space has failed to attract any other major rival or investors. Notably, the company has no listed peers.
This is not necessarily a testament to Urban Company’s dominance. Rather, it may reflect the low-margin, high-churn nature of the business, which is likely to affect its viability for venture capital. The platform’s dependence on low-skilled labour, limited to metro cities, further narrows its scalability. Most customers are urban, and the model is yet to reach Tier-3 markets.
Urban Company’s strengths lie in its brand recall, tech-enabled platform, and first-mover advantage. It has built a loyal customer base in metros and streamlined service delivery through its app.
However, it has notable weaknesses . The company is not yet profitable, and has limited geographic reach. Its bank balance has shrunk, and liabilities are rising, suggesting financial strain.
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