Urban Company IPO: SBI MF, Permira, Prosus and Elevation mop up shares worth nearly Rs 500 crore

Interestingly, each of these transactions happened at a share price Rs 103, the upper end of the company’s share price band.

State Bank of India (SBI) mutual fund (MF), Permira, Prosus and Elevation have all picked up shares worth Rs 498 crore, largely through secondary transactions, in IPO-bound Urban Company, the company’s red herring prospectus showed.

This comes weeks after Moneycontrol had exclusively reported that SBI MF, Permira and others were in talks to pick up Urban Company shares worth Rs 450 crore in the run up to its public market listing. 

These transactions were largely through secondary share sales where Tiger Global and Accel offloaded shares to each of the new buyers, the document showed.

While SBI MF bought shares worth Rs 250 crore, the largest quantity, the other transactions were significantly big, too. Permira and Prosus bought shares worth Rs 87.6 crore and Rs 87.1 crore respectively.

Elevation, an existing and early backer of the company, also bought shares worth Rs 73.6 crore during this round and further increased its stake in the company.

Interestingly, each of these transactions happened at a share price Rs 103, the upper end of the company’s share price band.

Moneycontrol had earlier reported that marquee investors such as Accel India, Elevation Capital, Bessemer India, VY Capital and Tiger Global, along with the promoters of Urban Company have witnessed a sharp rise in the value of their holdings after the company announced the price band of at Rs 98-103 per share for its upcoming public issue.

The initial public offering, seeking to raise about Rs 1,900 crore, will open on September 10 and close on September 12.

Promoters Abhiraj Singh Bhal, Chairperson, Managing Director and Chief Executive Officer, Raghav Chandra, Executive Director and Chief Technology and Product Officer and Varun Khaitan, Executive Director and Chief Operating Officer, each hold around 9.77 crore shares acquired at negligible cost. The value of their individual stakes has soared more than 10,000 times to a little over Rs 1,000 crore each.

Private equity investors too are set to reap substantial gains, with Accel India IV, which owns 14.52 crore shares purchased at an average cost of Rs 3.77 has seen the value of its stake rise from Rs 55 crore to nearly Rs 1,500 crore, a massive gain of over 26 times.

Bessemer India Capital Holdings, with 9.47 crore shares acquired at Rs 7.14, has seen its investment jump from Rs 68 crore to Rs 976 crore, or about 13 times. Elevation Capital, formerly SAIF Partners, holds 15.9 crore shares bought at Rs 5.39, the value of which has increased from Rs 85.7 crore to Rs 1,638 crore, or nearly 18 times.

Internet Fund, which purchased 6.08 crore shares at Rs 61.65, has seen the value of the stake rise from Rs 375 crore to Rs 627 crore, up 67 percent. VYC11, with 13.46 crore shares acquired at Rs 20.40, has recorded a surge in value from Rs 275 crore to Rs 1,386 crore, a rise of 400 percent.

Founded in 2014, the Gurugram-headquartered Urban Company is India’s largest tech-enabled home services marketplace, with operations across 51 cities across India, the United Arab Emirates and Singapore. Urban Company’s portfolio spans cleaning, pest control, plumbing, electrical work, beauty and wellness services, and appliance repair.

Over the past two years, the company has diversified into home solutions under its ‘Native’ brand, introducing products such as water purifiers and electronic door locks. Proceeds from the IPO will be utilised for technology and cloud infrastructure, office lease payments, marketing expenses and general corporate purposes.

Urban Company had posted a net profit of Rs 6.9 crore during the quarter ended June 2025, a decline of 45 percent from Rs 12.6 crore in the corresponding quarter last year. The drop was due to a Rs 8.6 crore loss in a joint venture, weak operating metrics and higher costs. Revenue rose 30.8 percent year-on-year to Rs 367.3 crore from Rs 280.9 crore, while EBITDA loss widened to Rs 4.8 crore from Rs 3.36 crore.