Urban Company IPO: This VC firm turns ₹14cr into ₹390cr
What's the story
Accel Partners, a prominent Silicon Valley venture capital firm known for its early investment in Facebook, has made a whopping ₹390 crore from its investment in Urban Company. The home services platform debuted on the National Stock Exchange(NSE) today at a premium of 57.52% over its initial public offering (IPO) price of ₹103 per share. Accel had invested about ₹14.3 crore in Urban Company over a decade ago at an average price of ₹3.77 per share.
Investment details
Accel's stake now worth over ₹1,500 crore
Accel had invested a total of ₹55 crore in Urban Company, acquiring 14.56 crore shares. At the current IPO valuations, the firm's stake is just over ₹1,500 crore. Even after cashing out a chunk worth ₹390 crore, it will still be sitting on shares valued at over ₹1,100 crore. This windfall adds to Accel's track record of high-profile exits, including an early investment in Facebook that turned into an 800-fold return by the time the company went public in 2012.
IPO success
Urban Company's stellar financial performance
Urban Company's IPO was heavily oversubscribed over three days, with the issue subscribed 103.6 times. The majority of the bids came from qualified institutional buyers (QIBs) and non-institutional investors. The company's recent financial performance has also been impressive, with a net profit of ₹240 crore in FY25, compared to a loss of ₹93 crore a year ago. Revenue grew 36% to ₹1,261 crore during this period.
Market leadership
About Urban Company and share price movement
Urban Company, formerly UrbanClap, is a leading tech-enabled home services platform offering beauty and wellness, appliance repair, cleaning, and maintenance services. Shivani Nyati of Swastika Investmart Ltd advised those who received allotment to book partial profit while holding the rest for long-term gains with a stop loss of ₹120. At the time of writing this article, Urban Company shares were trading at ₹168.46 on the NSE—64% higher than its upper IPO price band of ₹103.