Urban Company’s moment of truth is finally here. The home-services platform is expected to list on 17 September, and its Rs 1,900 crore initial public offering (IPO) saw investors queuing up to obtain their hands on the limited shares on offer. This, despite the company commanding a frothy valuation of nearly Rs 15,000 crore—that’s 12X its FY25 revenue.
Typically, investors would hesitate to purchase into an overvalued company. But in Urban Company’s case, the issue was subscribed over 100 times, building it the counattempt’s most subscribed mainboard IPO in 2025.
All thanks to the company reinventing itself in a space with scant competition. Over and above its promise of delivering home services, the company is now betting on its 55,000-odd gig workers to double as salespersons.
At the centre of this strategy is Urban Company’s Native line of products. Since its launch in 2023, Native has grown over 30X in revenue and now accounts for over 10% of Urban Company’s Rs 1,144 crore top line in FY25. All this simply by selling products while answering repair calls.
Basically, the idea is to resolve a laptop, suggest upgrades, and sell some components. Or, resolve a pipe and suggest a water purifier. It’s frictionless commerce, riding on routine services.
The idea works for both customers and sales professionals. While the former bears no additional burden of installation charges (for the Native product line), for the latter, each sale means inching closer to tarobtains, earnings incentives, and ensuring repeat visits.
Investors seem to like this approach. It also supports that Urban Company did a 180 by turning profitable in FY25. The company’s bottom line stood at Rs 240 crore against a Rs 93 crore loss the previous year.
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