Urban Company, India’s top home services platform, is preparing for its stock market debut with a ₹1,900 crore initial public offering (IPO). As part of the run-up to this major financial event, the startup’s co-founders — Abhiraj Bhal, Varun Khaitan, and Raghav Chandra — have sold shares worth ₹779.08 crore in secondary market transactions, according to the company’s Draft Red Herring Prospectus (DRHP) filed with the Securities and Exchange Board of India (SEBI) on April 28.
Founders Monetize Equity Through Secondary Deals
Between September 2024 and March 2025, each of the three Urban Company co-founders sold shares amounting to nearly ₹259 crore. These were secondary transactions, meaning no new equity was issued and the capital raised from these deals went directly to the founders. Such moves are not uncommon in the startup world, particularly when a company nears an IPO, as they allow early stakeholders to unlock liquidity from years of hard work.
The DRHP filing confirms these secondary deals were completed prior to the IPO and involved selling shares to trusted investors already familiar with Urban Company’s growth trajectory.
Shares Bought by Notable Investors and Industry Leaders
The buyer list from these transactions includes a mix of Urban Company’s existing institutional backers and respected industry veterans. Key names include:
- Prosus Ventures
- Dharana Capital
- Think Investments
- Sanjiv Rangrass – Former ITC executive
- SailThru Ventures
- Sriharsha Majety – Co-founder and CEO of Swiggy
This strong lineup of investors reflects confidence in Urban Company’s long-term vision, even as its founders reduce their individual equity holdings.
Urban Company’s IPO Plans
Urban Company plans to raise ₹1,900 crore through its IPO, which will include both a fresh issue of shares and an offer-for-sale (OFS) component. While the DRHP is yet to detail the precise structure of the offering, proceeds from the fresh issue are expected to fund several growth initiatives, including:
- Expansion into new domestic and international markets
- Technological advancements in service delivery
- Training and upskilling of service professionals
- Marketing and brand development
With a rapidly growing user base and a trusted platform across categories like beauty, home cleaning, appliance repair, and grooming, Urban Company is well-positioned to attract strong investor interest.
Strong Growth and Global Footprint
Founded in 2014, Urban Company has scaled rapidly, operating in major Indian metros and expanding internationally to regions including the UAE, Singapore, and Australia. The company differentiates itself through a highly curated gig workforce, strict quality controls, and a tech-driven customer experience.
Backed by global investors such as Tiger Global, Vy Capital, and Elevation Capital, Urban Company reached unicorn status and now stands as one of India’s most successful consumer tech startups.
Conclusion
The ₹779 crore secondary share sale by Urban Company’s founders highlights a pivotal pre-IPO phase as the company gears up for a ₹1,900 crore listing. With strong institutional backing and robust business fundamentals, Urban Company’s public offering is poised to become a landmark event in India’s startup ecosystem.
