ccel (famous as an early investor in Facebook) has earned huge profits from its investment in Indian home services platform Urban Company.
Nearly 10 years ago, Accel bought Urban Company shares at an average price of ₹3.77 per share, investing about ₹14.3 crore in total.
IPO Listing and Accel’s Returns
Urban Company’s IPO price was fixed at ₹103 per share. On the day of listing, shares opened with a 57.52% premium, turning Accel’s investment into nearly ₹390 crore. This is a 27x return, considered an exceptional success in the investment world.
On BSE, the stock opened at ₹161 (a 56.31% rise from IPO price) and later climbed to ₹179, a 73.78% gain.
On NSE, it was listed at ₹162.25 with a 57.52% premium. With this, Urban Company’s market valuation reached ₹24,216.49 crore.
The IPO received overwhelming investor support. By the closing day, it was 103.63 times oversubscribed. The company raised ₹1,900 crore through the IPO, with a price band of ₹98–₹103 per share.
How Urban Company Plans to Use IPO Funds
The company will use the fresh funds from new share sales for:
Developing new technologies and cloud infrastructure
Lease payments for offices
Marketing activities
General corporate purposes
Urban Company runs a technology-driven, full-stack online marketplace for quality home and beauty services. Apart from India, it also operates in the UAE, Singapore, and Saudi Arabia.
