Urban Company is a fast-growing online marketplace for home services. Home cleaning and renovation-related services are some of its major categories. It has recently added a high margin and fast-growing business line of providing consumer durables like water purifiers and digital home locks. After many years of losses, it has turned profitable in FY25. However, its margins remain slim.
It’s IPO of INR 19000 million is primarily aimed at providing liquidity to existing investors. A majority of its fresh issue of INR 4720 million is earmarked for technology-related expenditure and marketing.
Offer Details of the IPO:
Total Issue Size: INR19,000 million. The majority of the issue is an offer for sale.
The selling holders are the following VC and PE firms:
The promoters of the company are not selling any shares in the offer for sale.
Price Band: INR 98 to INR 103
Book Running Lead Managers (BRLMs) for the Issue:
Objectives of the IPO
· Capital Expenditures related to new technology development and cloud infrastructure – INR 1,900.00 million
· Lease payments for offices: INR 750.00 million
· Marketing activities: INR 900.00 million
Home Services Market – An Overview
Home services are a massive market with a diverse range of services. They are meant to improve the overall quality of life of families who aim to outsource these services for convenience. Some of the products the industry offers include cleaning, pest control, home maintenance, and repair, beauty and wellness, home renovation, and other service types like cooks, care at home, and handyman services.
Key Segments within the Industry
The home services market is generally divided into a few major sections:
Beauty and Wellness Services
Home Repair and Maintenance
Home Renovation and Up gradation
Other Categories
Industry Size and Growth Trends
The home services industry in India is a rapidly evolving sector, with a total addressable market (TAM) of INR5,100-5,210 billion (approximately US$60 billion) in FY2025. Within this, Urban Company sees 35% as SAM. SAM is the serviceable slice of TAM that the company can realistically reach in FY 2025
The industry is projected to grow at a CAGR of 10-11% from FY2025 to FY2030, driven by rising urbanization and increasingly busy lifestyles.
Segment-wise Growth
The industry can be broadly categorized into five main segments: cleaning and pest control, appliance repairs, handyman, home painting, and home renovation & upgradation.
Table: Breakdown of Addressable Market
| Broad Category | Typical Sub-categories / Services | Share of the SAM in FY 2025 (approx.)* |
| Cleaning & Pest‑Control | Daily, high‑frequency & deep‑cleaning (rooms, bathrooms, kitchens, carpets, sofas)Professional pest‑control (termite, cockroach, rodent, mosquito) | ≈ 42 % of SAM (largest slice) |
| Home Renovation & Upgradation | Minor upgrades (wall‑panels, wallpaper, flooring, kitchen/bathroom refreshes)Full-scale renovation projects (structural changes, major remodels) | ≈ 9 % of SAM (up‑gradations only) |
| Beauty & Wellness | Female beauty (skincare, hair‑care, waxing, manicure/pedicure, spa, treatments)Male grooming (haircuts, beard trims, facial)Massage therapy (Ayurvedic, sports, deep‑tissue) | ≈ 15 % of SAM |
| Handyman Services | Electrical, plumbing, carpentry, minor repairs, installations (e.g., fans, lights) | ≈ 17 % of SAM |
| Home Painting | Interior & exterior painting, wood‑polishing, decorative finishes | ≈ 15 % of SAM |
| Appliances & Repairs | Installation, servicing & repair of ACs, refrigerators, washing‑machines, water‑purifiers, microwaves, geysers, TVs, laptops, etc. | ≈ 2 % of SAM (still a sizable revenue stream) |
| Cooks & Meal‑Prep | Part-time/full-time home cooks, meal‑prep services (mainly for dual-income households) | ≈ 1 % of SAM (larger share in the UAE) |
| Care‑at‑Home (Child‑care, Elder‑care, Nursing) | Full-time/part-time nannies, babysitters, senior‑care, post-operative care, physiotherapy | ≈ 1 % of SAM (fast-growing segment) |
| Other Categories | Packers & Movers, driver‑on‑demand, gardener services, pet‑grooming, small‑project home‑decor (wall‑panels, TV‑walls) | ≈ 1 % of SAM (niche but expanding) |
Source: RHP
Key Drivers of Growth
The growth of the home services industry in India is driven by several key factors:
Urban Company: Company Overview
Urban Company, formerly known as UrbanClap Technologies India Private Limited, is a technology-driven, full-stack online services marketplace for quality-driven services and solutions across various home and beauty categories. The company was founded in 2014 by Abhiraj Singh Bhal, Varun Khaitan, and Raghav Chandra, who have over 10 years of experience in the home services and technology industries.
The founders of Urban Company have a strong background in the technology and home services industries. Abhiraj Singh Bhal, the Chairperson, Managing Director, and Chief Executive Officer, has experience in the Boston Consulting Group and has been recognized as one of the most influential young Indians by GQ. Varun Khaitan, the Executive Director and Chief Operating Officer, has experience in Qualcomm Incorporated and the Boston Consulting Group. Raghav Chandra, the Executive Director and Chief Technology and Product Officer, has experience at Twitter, Inc., and has been recognized as one of the most influential young Indians by GQ.
Segments and Products/Services
Urban Company operates under three business segments: India consumer services, Native, and International business.
Table: Business Model
| What Urban Company does | Why it matters | |
| Full-stack online marketplace | A technology-driven platform (web + mobile app) that matches consumers with vetted, independent service professionals for a wide range of home‑services and beauty‑wellness tasks. The platform also sells “Native” hardware products (RO water purifiers, electronic door‑locks) and consumables to professionals. | Enables end-to-end control of the consumer experience – discovery, booking, payment, quality‑check, post-service warranty – while capturing the entire value chain (service fee + product margin). |
| Two-sided network | • Consumers – middle‑ and high‑income households (annual income > INR 5 Lakh) in India’s top 200 cities (≈ 53 m households) and in the UAE, Singapore & KSA.• Service professionals – independent technicians, beauticians, cleaners, handymen, etc., who earn 15‑20 % more than peers on other gig platforms and work ≈ 50 % fewer hours per job. | The platform’s network effects raise utilisation for both sides: more jobs → higher earnings → better retention of pros; more pros → faster, higher‑quality service → higher consumer stickiness. |
| Geographic footprint | • India: 47 cities (as of 31 Mar 2025) with a roadmap to top 200 cities by FY 2030 (≈ 62 % of SAM lives outside the 8‑city core). <br>• International: UAE, Singapore, and a joint‑venture in KSA (≈ 9.8 % of FY 2025 revenue). | Gives a large addressable market (SAM ≈ INR 1,770‑1,850 bn ≈ US$21 bn, 35‑36 % of the total home‑services TAM of ₹5,100‑5,210 bn) and a clear path to scale. |
| Revenue streams | 1. Service fee on every transaction (average fee ≈ 27‑28 %).2. Product sales – “Native” water purifiers, electronic door locks, consumables & tools sold to pros (≈ 46 % of product‑sales revenue comes from own‑brand items).3. Subscription/royalty fees from JV partners (e.g., KSA JV). | Diversifies cash‑flow and lifts margins as product sales have a higher contribution than pure service fees. |
Source: RHP
Competitive Landscape
The market is predominantly offline. Amongst online players, Urban Company holds the lion’s share of the market.
Table: Online vs Offline
| Metric | Value (INR bn) | % of total |
| Total Indian Home‑Services TAM (FY 2025) | 5,100‑5,210 (≈ USD60 bn) | 100.00% |
| Urban Company Serviceable Addressable Market (SAM) | 1,770‑1,850 (≈ USD21 bn) | 35‑36 % of TAM |
| Online‑only NTV (all platforms) | 41‑43 | ≈ 0.8 % of TAM |
| Urban Company’s share of the online market | 27‑29 | ≈ 65‑70 % of online NTV |
| Geographic split of SAM | 38 % in the 8‑city cores, 62 % in the remaining 192 cities | – |
Source: RHP
Table: Comparison with Competitors
| Platform | Core focus | Geographic footprint | FY 2025 online NTV (INR bn) | Market share of online NTV |
| Urban Company | 9‑plus categories (cleaning, pest‑control, beauty, handymen, painting, appliances, cooks, care‑at‑home, etc.) | 47 Indian cities + UAE, Singapore, KSA (joint‑venture) | 27‑29 | ≈ 65‑70 % |
| House joy | Primarily cleaning & repairs (limited beauty) | 30+ Indian cities | ~ 5‑6 | ~ 12‑15 % |
| Bro4u / Zimmber | Handyman & appliance repair (category‑specific) | 15‑20 Indian cities | ~ 2‑3 | ~ 5‑7 % |
| OYO Home Services | Recently launched, focuses on cleaning & pest‑control | 10‑12 Indian metros | < 1 | < 3 % |
| TaskRabbit-style niche apps (e.g., UrbanClap‑Lite regional players) | Single‑category (e.g., only beauty or only painting) | City‑level | < 1 | < 2 % |
Source: RHP
Company Weaknesses
Low Margins: While the company turned profitable in FY25, its margins remained very low. Also, the company continues to invest heavily in brand building. It has earmarked INR 900m for marketing-related spending.
A history of write-offs: The company has written off investments in multiple entities and subsidiaries in the past. Some of these include its US subsidiary, Dutch subsidiary, Singapore subsidiary, and other entities.
Financial Profile:
Strong Revenue Growth: The company’s revenue has expanded by 45% over the past two years. This was driven by city-level expansion and a new product line. The new product line is related to its “Native” business line that offers water purifiers and digital home locks, amongst others.
Slim margins: Urban company has less than 1% operating margins. Customer acquisition costs continue to be high despite robust repeat customers.
Table: Financial and KPI summary
| Segment | Metric | FY23 | FY24 | FY25 | CAGR |
| Consolidated Business | Net Transaction Value (₹ mn) | 20779.49 | 25639.05 | 32709.14 | – |
| Revenue from operations (₹ mn) | 6365.97 | 8280.18 | 11444.65 | 34% | |
| Contribution margin (% of NTV) | 16.51 | 18.81 | 19.53 | – | |
| Adjusted EBITDA (₹ mn) | -2976.92 | -1190.12 | 120.91 | – | |
| Adjusted EBITDA Margin (% of NTV) | -14.33 | -4.64 | 0.37 | – | |
| Adjusted EBITDA Margin (% of revenue) | -46.76 | -14.37 | 1.06 | – | |
| Profit before tax (₹ mn) | -3124.42 | -927.27 | 285.53 | – | |
| Profit after tax (₹ mn) | -3124.84 | -927.72 | 2397.65 | – | |
| Annual transacting consumers (mn) | 4.93 | 5.75 | 6.78 | – | |
| Average monthly active service professionals (number) | 42523 | 46012 | 47833 | – | |
| India (Consumer Services + Native) | Net Transaction Value (₹ mn) | 18096.92 | 22533.76 | 28227.08 | – |
| Revenue (₹ mn) | 5738.45 | 7382.87 | 9974.16 | 32% | |
| Adjusted EBITDA (₹ mn) | -1767.67 | -357.96 | 489.10 | – | |
| Adjusted EBITDA Margin (% of NTV) | -9.77 | -1.59 | 1.73 | – | |
| Adjusted EBITDA Margin (% of revenue) | -30.80 | -4.85 | 4.90 | – | |
| India Consumer Services | Net Transaction Value (₹ mn) | 18051.92 | 22155.82 | 26671.95 | – |
| Revenue (₹ mn) | 5700.31 | 7095.16 | 8813.93 | 24% | |
| Revenue – Services (₹ mn) | 4355.67 | 5627.68 | 6948.22 | 26% | |
| Revenue – Products (₹ mn) | 1344.64 | 1467.48 | 1865.71 | 18% | |
| Contribution margin (% of NTV) | 17.73 | 19.62 | 20.20 | – | |
| Adjusted EBITDA (₹ mn) | -1755.17 | -101.08 | 879.33 | – | |
| Adjusted EBITDA Margin (% of NTV) | -9.72 | -0.46 | 3.30 | – | |
| Adjusted EBITDA Margin (% of revenue) | -30.79 | -1.42 | 9.98 | – | |
| Annual total transacting consumers (mn) | 4.76 | 5.59 | 6.54 | – | |
| Average monthly active service professionals (number) | 41177 | 44464 | 45619 | – | |
| Native | Net Transaction Value (₹ mn) | 45.01 | 377.94 | 1555.13 | – |
| Revenue (₹ mn) | 38.14 | 287.71 | 1160.23 | 452% | |
| Adjusted EBITDA (₹ mn) | -12.50 | -256.88 | -390.23 | – | |
| Adjusted EBITDA Margin (% of NTV) | -27.77 | -67.97 | -25.09 | – | |
| Adjusted EBITDA Margin (% of revenue) | -32.77 | -89.28 | -33.63 | – | |
| InternationalBusiness | Net Transaction Value (₹ mn) | 2682.57 | 3105.29 | 4482.06 | – |
| Revenue (₹ mn) | 627.52 | 897.31 | 1470.49 | 53% | |
| Contribution margin (% of NTV) | 8.35 | 14.50 | 19.03 | – | |
| Adjusted EBITDA (₹ mn) | -1209.25 | -832.16 | -368.19 | – | |
| Adjusted EBITDA Margin (% of NTV) | -45.08 | -26.80 | -8.21 | – | |
| Adjusted EBITDA Margin (% of revenue) | -192.70 | -92.74 | -25.04 | – | |
| Annual transacting consumers (mn) | 0.17 | 0.17 | 0.24 | – | |
| Average monthly active service professionals (number) | 1346 | 1548 | 2215 | – |
Source: RHP
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