Accel set for 28x return as Urban Company IPO values stake at ₹1,500 cr

First institutional investor in Indian home services platform could earn nearly ₹1500 crore from ₹70 crore investment made in 2015

Venture capital firm Accel is poised to realise one of India’s largest startup returns as home services platform Urban Company’s initial public offering (IPO) this week could deliver the investor nearly ₹1500 crore from a ₹ 70 crore bet made a decade ago.

 

The Gurugram-based firm’s 145.2 million shares, acquired at an average price of ₹3.77 each starting in 2015, are valued at approximately ₹1,500 crore at Urban Company’s IPO price band of ₹98-103 per share-- representing a 28.5-fold return.

 

The offering, which opens Wednesday and seeks to raise ₹1,900 crore at a valuation of nearly ₹14,790 crore, will test investor appetite for profitable Indian consumer internet companies as public market conditions remain challenging globally.

 

 

The grey market premium (GMP) of ₹35 indicates the unofficial premium investors are willing to pay above the IPO price in the unregulated grey market before the stock is officially listed, reflecting an expected listing gain of 33-35 per cent. Accel has no plans to exit the firm and would remain invested.

 

“This IPO represents far more than a financial outcome. It affirms that India can produce companies that combine category leadership with societal impact at scale,” Abhinav Chaturvedi, partner at Accel, told Business Standard.

 

“What began as a $750,000 seed cheque has grown into a company that gives dignified livelihoods to tens of thousands of service professionals,” he said.

 

Earlier this year, Urban Company reported a 38 per cent rise in operating revenue to ₹1,144.5 crore for the financial year 2024-25 (FY25). The platform turned profitable during the year, posting a net profit of ₹240 crore, compared with a ₹93 crore loss in the previous financial year. It reported a sharp turnaround in its bottom line for FY25, aided by a ₹211 crore deferred tax credit. Even excluding the credit, the at-home services platform posted a pre-tax profit of ₹28.6 crore. This turnaround comes on the back of strong revenue growth and operational efficiency.

 

When Accel backed Urban Company in January 2015, the consensus was that online service delivery had failed globally. That time Urban Company had just three founders and a pitch deck. Abhiraj Singh Bhal, Varun Khaitan and Raghav Chandra were reimagining how millions of workers could access dignified, dependable livelihoods.

 

“Our conviction stemmed from their sheer clarity of thought, first-principles problem solving, and the courage to attempt something no one believed could work in India,” said Chaturvedi.

 

Accel saw Urban Company as more than a business opportunity. More than 90 per cent of the country’s workforce has historically remained in the shadows of informality, invisible to gross domestic product (GDP) metrics, lacking access to social security, credit systems, and structured career paths.

 

The founding team believed that moving millions from fragmented, low-productivity informal work to structured service platforms promised ripple effects: rising household incomes, deeper financial inclusion, and stronger consumer demand.

 

To realize this vision of workforce formalisation, Chaturvedi said Accel’s role extended far beyond writing checks, positioning itself as a strategic partner through multiple business phases. This includes support through early product market fit (PMF), scaling operations and category expansion. It provided guidance during Covid-19 pandemic disruptions and for strategic resets.

 

Chaturvedi said Urban Company’s model showed how technology could formalise an entire workforce layer. This includes providing training, safety nets, steady incomes, and pathways for mobility, while delivering high-quality, reliable services to a rapidly urbanising middle class.

 

“Urban Company’s IPO underscores that India can produce companies that are profitable, resilient, and category-defining at scale,” said Chaturvedi.  

 

When asked about the role Accel envisioned for itself post-IPO in Urban Company, the investor said it has no plans to exit and its role as a partner continues.