India’s leading home and beauty services startup, Urban Company, has turned the financial tide ahead of its much-anticipated IPO. The firm reported a consolidated net profit of ₹242.6 Cr for the nine months ended December 31, 2024 (9M FY25), a sharp turnaround from the ₹57.8 Cr loss it posted in the same period last year.
But the story isn’t just about profit—it’s about growth, scale, and strategic positioning as the company prepares to go public.
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Credits: Entrackr
Tax Windfall Lifts Profits, But Core Business Is Also in the Green
The headline profit figure got a significant boost from a one-time deferred tax gain of ₹215.5 Cr, linked to past tax losses and temporary differences. Excluding this gain, Urban Company would have still posted a profit of ₹27.1 Cr, a sign of improving fundamentals.
This marks a meaningful milestone for the IPO-bound firm, demonstrating its ability to generate sustainable operating profits after years of high-growth expenditure.
Revenue Surges on Strong User and Service Growth
Revenue from operations rose 41% year-on-year to ₹846 Cr in 9M FY25, up from ₹600.9 Cr. The company attributes this spike to growth in its annual transacting user base and higher net transaction value (NTV)—the total amount paid by users for services, net of cancellations and discounts.
NTV surged over 28% to ₹2,459.8 Cr, while the number of transacting users grew by 10% to 6.5 million.
Urban Company’s full-stack model—covering everything from service delivery to backend logistics—appears to be paying off in both scale and retention.
Business Segments: India Still Dominates, But Global and Product Bets Are Rising
Urban Company detailed a breakdown of its revenue streams in its DRHP:
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Indian Consumer Services: ₹654 Cr (up 24% YoY) from hyperlocal home services like beauty, cleaning, and appliance repair.
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Native Products (Water Purifiers & Smart Locks): ₹76 Cr, a nearly 7x jump from ₹11 Cr. Launched under the brand Native, this vertical reflects Urban Company’s push into consumer products.
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International Operations (UAE, Saudi Arabia, Singapore): ₹116.5 Cr (up 83%), suggesting that its global playbook is scaling well outside India.
This diversification is critical as it allows the company to hedge against domestic market saturation while building long-term brand equity abroad.
Expenses Rise—but Revenue Outpaces Spend
Urban Company’s total expenses rose 23% to ₹903 Cr in 9M FY25, up from ₹732.7 Cr a year earlier. However, the revenue growth of 41% significantly outpaced spending, improving the company’s operating leverage.
Key Expense Heads:
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Procurement Cost: ₹148 Cr (up 80%) due to higher product sales and onboarding of service tools.
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Employee Costs: ₹258 Cr (up 2%), still the largest expense head.
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Ad Spends: ₹131 Cr (up 7%), suggesting a controlled and efficient marketing strategy despite growth.
IPO Plans: ₹1,900 Cr Public Offering on the Horizon
Urban Company filed its DRHP with SEBI, aiming to raise ₹1,900 Cr via IPO. The offering includes:
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Fresh Issue: ₹429 Cr to fund tech upgrades (₹190 Cr), new office leases (₹70 Cr), and marketing (₹80 Cr).
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Offer-for-Sale (OFS): ₹1,471 Cr from early investors including Tiger Global, Accel, Elevation Capital, and Bessemer.
Notably, cofounders Abhiraj Singh Bhal, Varun Khaitan, and Raghav Chandra will not sell shares in the OFS and continue to hold a 20% stake collectively.
New Bet: Urban Company Enters Quick Commerce With ‘Insta Help’
In a bold new move, the company recently launched Insta Help, a 15-minute maid delivery service—marking its entry into India’s booming quick commerce space.
While experimental for now, it signals Urban Company’s ambition to move beyond scheduled appointments and into real-time, high-frequency services.
Credits: The Arc
Final Word
Urban Company’s IPO is shaping up as one of the most exciting listings in India’s startup ecosystem. With improving profitability, expanding verticals, and a proven ability to scale in India and abroad, the company looks well-positioned for public market success.
As the IPO nears, all eyes will be on how the markets value this next-generation services platform.
