​Urban Company, the at-home services platform, recently completed a significant secondary share sale totaling approximately ₹525 crore (about $63 million). This transaction involved the sale of shares by early investors, founders, and employees to institutional investors, marking a notable event in the company’s pre-IPO activities.

• Dharana Capital’s Investment: Dharana Capital, an India-focused investment firm and a spinoff of Vy Capital, led the secondary transaction by acquiring shares worth over ₹400 crore (approximately $50 million) from employees and other shareholders. This deal represents the largest Employee Stock Ownership Plan (ESOP) liquidity event in Urban Company’s history.
• Snapdeal Founders’ Exit: Kunal Bahl and Rohit Bansal, co-founders of Snapdeal and Titan Capital, exited their investment in Urban Company, realizing a 200x return. They had invested ₹57 lakh in 2015 and exited with proceeds totaling ₹111 crore.
• ESOP Secondary Sale: Urban Company announced its fifth and largest ESOP secondary sale program, valued at ₹203 crore. This program allowed 446 current and former employees to liquidate their vested stocks.
• Financial Performance: In FY23, Urban Company reported a 45% year-on-year increase in operating revenue to ₹637 crore. The company’s losses before taxes narrowed to ₹308 crore from ₹514 crore in FY22. Notably, the company achieved profitability at the profit-before-tax level in April 2024.

These developments indicate Urban Company’s strategic preparations for a potential IPO in 2025, showcasing investor confidence and the company’s commitment to rewarding its employees through substantial ESOP programs.

Sources