Urban Company and boAt Set for Stock Market Debut
In a significant development for India’s burgeoning startup ecosystem, home services marketplace Urban Company and wearables brand boAt have received approval from the Securities and Exchange Board of India (Sebi) for their initial public offerings (IPOs). This regulatory green light comes at a time when IPO activity is gaining momentum, with Sebi indicating a record number of approvals expected in the coming months.
Urban Company’s IPO Plans
Urban Company, which filed its draft red herring prospectus (DRHP) in April, aims to raise approximately ₹1,900 crore through its IPO. This offering will consist of a fresh issue of ₹429 crore and an offer-for-sale (OFS) of ₹1,471 crore by existing shareholders. The IPO is not just a financial maneuver; it will also facilitate partial exits for early investors such as Accel, Tiger Global, Elevation Capital, and Vy Capital, while simultaneously infusing fresh capital into the company’s growth initiatives.
Founded in 2014, Urban Company has successfully raised over $450 million from global investors, including notable names like Tiger Global and Accel. According to its latest filings, the company recorded a remarkable 38% year-on-year increase in revenue, reaching ₹1,144 crore in FY25, and achieved profitability with net earnings of ₹28.5 crore. The proceeds from the IPO are earmarked for enhancing service quality, scaling supply in existing verticals, and expanding into new categories.
boAt’s Ambitious Valuation
On the other hand, Imagine Marketing, the parent company of boAt, has opted for a confidential filing route for its draft IPO paper earlier this year. Reports suggest that boAt is targeting a valuation of around $1.5 billion (approximately ₹13,000 crore). Established in 2016, boAt has rapidly ascended to become one of India’s leading consumer electronics brands, particularly in the audio wearables, smartwatches, and personal accessories sectors.
To date, boAt has raised over $170 million, including a significant $60 million round in 2023 led by Warburg Pincus and Malabar Investments. Warburg Pincus stands as its largest external shareholder, followed closely by Fireside Ventures and Qualcomm. Financially, boAt reported revenues of ₹3,122 crore in FY24, although its FY25 results are yet to be disclosed.
A Rising Tide of IPOs
Urban Company and boAt are not alone in their IPO pursuits; they join a wave of high-profile firms eyeing listings. Companies like WeWork India, PhysicsWallah, and Groww have also recently secured Sebi approvals, signaling a rising investor appetite for consumer businesses and the maturation of India’s startup ecosystem.
Additionally, digital lending platform Kissht, operated by OnEMI Technology Solutions, has filed its DRHP with the regulator to raise up to ₹1,000 crore through a fresh issue of shares.
Sebi’s Enhanced Processing Capacity
On August 26, Sebi whole-time member Kamlesh Chandra Varshney indicated that September could witness the highest-ever number of IPO clearances, attributing this to the regulator’s enhanced processing capacity. Furthermore, Sebi is considering relaxed norms for large IPOs to streamline the listing process, which could further invigorate the market.
Conclusion
The approvals for Urban Company and boAt mark a pivotal moment in India’s IPO landscape, reflecting a growing confidence among investors and a robust startup ecosystem. As these companies prepare for their market debut, they not only represent their respective sectors but also the broader potential of Indian entrepreneurship. With the momentum building, the coming months could see a flurry of activity, reshaping the investment landscape in the country.