Urban Company co-founders — Abhiraj Singh Bhal, Raghav Chandra, and Varun Khaitan — have sold shares worth nearly ₹780 crore through secondary transactions ahead of the company’s draft red herring prospectus (DRHP) filing for its upcoming IPO. Each founder divested shares valued at around ₹260 crore between September 2024 and February 2025, according to the DRHP.
A portion of the post-tax proceeds was reportedly used to settle outstanding payments for shares allotted to them during a 2019 rights issue, which were only partially paid at the time and required full payment prior to going public. Notably, the founders will not be participating in the IPO’s offer-for-sale (OFS) component.
Buyers of these shares include institutional investors like Prosus Ventures, Dharana Capital, Think Investments, as well as individuals such as former ITC executive Sanjiv Rangrass and SailThru Ventures. Swiggy founder and group CEO Sriharsha Majety also purchased shares worth ₹88 lakh. Swiggy recently launched Pyng, a new platform focused on white-collar services like legal, accounting, nutrition, and therapy.
Following these deals, the three founders now hold a combined 20% stake in Urban Company. On Monday, the company officially filed for a ₹1,900 crore IPO, comprising a ₹429 crore primary issue and a ₹1,471 crore OFS from early investors like Accel, Tiger Global, and Elevation Capital.
In a related transaction last year, Dharana Capital had acquired nearly ₹400 crore worth of shares from early employees and investors, including Snapdeal founders Kunal Bahl and Rohit Bansal, who reportedly exited with a 200x return on their early investment.
Urban Company posted a net profit of ₹242 crore in the first nine months of FY25, a significant turnaround from a ₹58 crore loss in the same period the previous year. While the company received a ₹215 crore deferred tax credit, it also reported profitability on a pre-tax basis. Operating revenue for April to December 2024 rose 41% year-over-year to ₹846 crore.
The platform recorded 6.51 million annual transacting customers and an average of 48,169 monthly active service professionals during the same period. Its Native product segment, which includes water purifiers and smart locks, generated ₹102 crore in net transaction value and ₹76 crore in revenue.
