Prosus NV has raised its holding in Urban Company Ltd to 7.35 per cent, after acquiring roughly an additional 4 percentage points by investing about $139 million, ahead of the home services startup's Initial Public Offering. This move positions Prosus as one of Urban Company's largest shareholders and signals strong institutional faith in the firm's prospects.

Urban Company's IPO drew overwhelming demand - it was subscribed over 103 times - and its shares listed at a premium of about 57.5 per cent over the issue price on the National Stock Exchange, opening at ₹162.25 versus the ₹103 issue price. The listing surged the company's market valuation to nearly $2.8 billion.

According to Ashutosh Sharma, head of Prosus India Ecosystem, the firm increased its stake during the IPO allotment. Prosus first backed Urban Company in 2021; this latest acquisition underscores its continued appetite for stakes in Indian startups with domestic consumer and service-led business models.

Urban Company, founded in 2014 by Abhiraj Singh Bhal, Varun Khaitan, and Raghav Chandra, operates across home services such as beauty, cleaning, appliance repair and plumbing. It has expanded into over 50 cities in India and also operates in international markets including UAE and Singapore. The company reported strong financial performance in its fiscal year ending 2025, with revenue growth of around 36 per cent year-on-year and its first net profit of approximately ₹239–₹240 crore.

Investor enthusiasm was evident in the IPO process. Qualified Institutional Buyers led the subscription with particularly strong bids. The grey market premium, which reflects expectations ahead of listing, had risen to over 50 per cent above the issue price, signalling investor confidence in an upward listing trajectory.

Prosus's move comes amid a broader trend of institutional investors increasing their exposure to Indian startups ahead of IPOs, particularly those in consumer-facing, service-oriented sectors. Earlier urban and tech-led listings have attracted robust demand, and IPOs that show solid unit economics-strong margins, revenue growth, steps toward profit-are being favoured by capital.

Urban Company's stock market debut saw a steep rise: the shares not only opened with a 57.5 per cent premium on NSE, but trading surged further, reflecting both investor optimism and perceived underpricing in its IPO offer.

Prosus, headquartered in the Netherlands and known for its early stake in Tencent Holdings, has invested over $8-9 billion in the Indian startup ecosystem. It has backed firms such as Swiggy, Meesho, and PayU. Its amplified investment in Urban Company exemplifies a strategy of anchoring bets on firms that combine growth potential with improving financial metrics.

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