Urban Company Raises $188M In Funding
Urban Company has allocated a total of 1.5 million shares of TIGER stock to raise $188 million in its initial public offering. The document shows: “Urban Company distributes 1,500,000 shares, or 1% of the total shares of the company to the IPO, with the intention of raising at least $190 million, the same amount as in the previous financing round. The documents also show that in addition to the original $200 million of its original $180 million investment in Tiger, it also allocates a maximum of 2.2 million shares to raise another $50 million (or $100 million) in a second round.
TIGER has raised $190 million from investors led by Prosus, formerly Naspers, according to a regulatory filing filed by Tofler. TIGERS invested $11.06 million, while Steadview Capital participated in the new round, which took place after 20 months, for a further $11.05 million. The round was led by Prosus, which raised $10 million and $5 million, respectively, from the private equity and venture capital sectors and other investors. Earlier this year, TIFER, one of the world’s largest private equity firms, raised about $75 million to expand its investment portfolio.
The startup, which has raised $185 million so far, said early investors had sold some of their shares under the new round. After the financing round, the Company has a diluted combined stake of 24.66%, reducing its stake in TIGER to 14.56% and 40% respectively.
Existing investors Steadview Capital, which led the start-up’s Series D in December last year, were also involved in the current round. Elevation Capital (formerly Saif Partners) will hold 14.56% of TIGER, while Accel India will hold 14% and 40% of TIGER, according to the documents. The other lenders are Naspers, Accell India, TIGER, and other private equity and venture capital firms. At the time of the round, Elevations Capital will be the largest shareholder in the company, following its $5.5 million investment in 2014 and $1.2 million investment in 2015.
Urban Company is the twelfth Indian startup to spin unicorn by 2021 and has doubled its turnover from Rs 132.04 crore in FY19 to Rs 263 crore for FY20. After a net profit of 2.5 crores (1.6 million dollars) in the first quarter of fiscal 18, EPS in the second quarter will rise to 36 – 6p from 47 – 1p, based on the current price-earnings ratio of the company’s shares. Urban Company had sales of around Rs 216 crore last year, compared with about Rs 150 crore a year ago. Some sources estimate that Urban Company has a valuation of $2 billion, which equates to $2.5 billion in assets.