India’s Urban Company soars 58% above IPO price in year’s most subscribed offering

Urban Company, India’s largest location services platform, stormed onto the nationalist markets connected Wednesday, opening 58% supra its contented terms aft delivering the country’s astir subscribed IPO of the year.

The Gurugram-based startup, which connects users to at-home services ranging from quality treatments to appliance repair, debuted connected the Mumbai-based National Stock Exchange astatine ₹162.25 per stock (approximately $1.84), up from its IPO contented terms of ₹103. The offering, which opened past week, was subscribed implicit 100 times, meaning investors placed orders for 100 times much shares than were available, signaling robust request from some organization and retail investors.

Urban Company’s nationalist listing has besides served arsenic a partial exit accidental for its aboriginal backers, with Accel reaping the largest gains, followed by Elevation Capital and Tiger Global. Accel, which invested astatine an mean outgo of ₹3.61 per share, is sitting connected imaginable profits of astir 45x, portion Elevation, with an introduction terms of ₹5.39 per share, stands to marque astir 30x and Tiger Global is looking astatine comparatively humble gains, reportedly astir 1.3 times its outgo basis.

One of the cardinal reasons down Urban Company’s occurrence implicit the past decennary has been its quality to signifier traditionally unorganized household services successful India — including cleaning, plumbing, electrical work, massage, and quality treatments. By digitizing these offerings done its app, the institution has created an on-demand level successful a marketplace that lacked standardization. In that sense, Urban Company enjoys a adjacent monopoly, remaining the largest organized subordinate successful this space.

Before kicking disconnected the $217 cardinal nationalist offering, Urban Company raised $97 cardinal from anchor investors, including Goldman Sachs, Dragoneer Investment Group, Norges Bank, GIC, Nomura Amundi Funds, Steadview Capital, Prosus, and WhiteOak. Domestic communal funds including SBI Mutual Fund, ICICI Prudential, Nippon, and UTI besides participated successful the pre-IPO secondary round.

Founded successful November 2014 arsenic UrbanClap by Abhiraj Singh Bhal, Varun Khaitan, and Raghav Chandra, Urban Company operates successful 59 cities crossed 4 countries, including India, the UAE, Singapore, and Saudi Arabia — with India remaining its largest marketplace truthful far. The institution plans to participate much than 200 cities by the extremity of fiscal twelvemonth 2030 to grow the scope of its household services.

Urban Company aims to utilize the nett proceeds chiefly for exertion improvement and unreality infrastructure, on with lease payments for bureau spaces and selling initiatives.