Subscribe for Urban Company Ltd IPO; Anand Rathi

IPO

Anand Rathi, Urban Company Ltd

Urban Company operates a technology-driven, full-stack online services marketplace for quality-driven services and solutions across various home and beauty categories. Company operate in 51 cities across India, United Arab Emirates (“UAE”) and Singapore, excluding cities served by their joint venture in Kingdom of Saudi Arabia (“KSA”), of which 47 cities are in India, as at June 30, 2025. Their platform enables consumers to easily order services, including cleaning, pest control, electrician, plumbing, carpentry, appliance servicing and repair, on-demand home-help assistance, painting, skincare, hair grooming and massage therapy. These services are delivered by trained and independent service professionals at the consumers’ convenience. In Fiscals 2023 and 2024, company expanded into home solutions with the launch of water purifiers and electronic door locks, respectively, under the brand name ‘Native’. Company have also recently launched, and are in the process of scaling up, their on-demand home-help assistance (“InstaHelp”) offering in specific micro markets across a number of cities in India. Company are focused on enabling delivery of a quality-driven, standardized and reliable service experience. To achieve this, they have engaged a select network of background-verified independent service professionals, empowering them with comprehensive support.

Valuation and Outlook

At the upper price band company is valuing at P/E of 65.7x to its FY25 earnings with P/S of 12.9 and market cap of Rs 1,47,895 million post issue of equity shares. We believe that the IPO is fully priced and recommend a “SubscribeLong Term” rating to the IPO.

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