Urban Company’s co-founders, Abhiraj Bahal, Varun Khaitan, and Raghav Chandra, are looking ahead to a sustained growth outlook and disciplined investment, following their company’s successful initial public offering (IPO).
Shares of app-based beauty and home services platform Urban Company Ltd on Wednesday ended with a premium of more than 62% over the issue price of Rs 103. The company's stock started trading at Rs 161, a jump of 56.31% from the issue price on the BSE. During the day, it zoomed 73.78% to Rs 179. Shares of the company ended at Rs 167.05, up 62.18%
As guests on NDTV Profit, Abhiraj Bahal, CEO Urban Company, Varun Khaitan, and Raghav Chandra, Co-Founders of Urban Company, spoke on the significance of investor confidence and outlined their strategic roadmap for the coming quarters.
Abhiraj Bahal said that the IPO’s success is not a mark of present-day achievement, but rather a "promise of the future." He said that Urban Company remains a small player in the vast home services industry, with less than 1% market share. He says that it is on the company to organise the unorganised sector, establish quality standards for customers, and enable service professionals to lead a dignified, middle-class life.
Bahal said, "In the fiscal year 2025, Urban Company's revenue was primarily driven by its India core services, which accounted for 77% of the total. The remaining revenue came from its other business segments: 13% from international operations and 10% from the Native brand. The Instahelp service, having been launched towards the end of the year, contributed a very small amount to the overall revenue."
Bahal detailed a business strategy for sustainable growth. "The core Indian services business is already profitable and will continue to be a focus for profitable growth through investments in training, quality, and technology. The company also has three newer segments: Native, Instahelp, and its international footprint. The goal for these segments is to continue investing in them to set them up for future success."
Co-founder Varun Khaitan confirmed that the company's disclosure policy will remain transparent and clear. He also said that their businesses are at different stages of maturity. "We are going to continue to invest in the right pillars for each of these businesses, India services, Native, Instahelp and International, and in the subsequent quarters to come. Every time we will attempt to give clear disclosures on where we think the profitability and margins are coming," Khaitan said.
From a product and technology standpoint, Raghav Chandra said the tech plays a crucial role in allowing the company to scale. "We are in a place where we launch in new cities, new categories. Once the playbook is cracked, we need to keep rewriting," he said.
The Rs 1,900-crore IPO had a price band of Rs 98-103 per share. The company plans to use funds raised through the fresh issuance for new technology development and cloud infrastructure, lease payments for its offices, marketing activities, and general corporate purposes.
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