Urban Company, the popular home services platform, is gearing up for its initial public offering (IPO) with a significant pre-IPO funding round. The company secured Rs 500 crore (approximately $60 million USD) in a secondary share sale, attracting notable investors. This investment round saw existing investors, including Tiger Global and Accel, offloading some of their shares to new participants.

State Bank of India Mutual Fund (SBI MF) was among the key investors in this pre-IPO round. The participation of a large and established mutual fund like SBI MF underscores investor confidence in Urban Company’s potential for growth and profitability ahead of its public market debut. The deal values Urban Company at approximately Rs 15,000 crore (around $1.8 billion USD), highlighting a significant valuation increase.

This secondary share sale is a common strategy employed by companies before going public. It allows early investors to realize some of their returns while providing fresh capital to the company, often used to further expand operations or pay down debt. The participation of SBI MF and other investors suggests a positive market outlook for Urban Company’s IPO, indicating strong anticipation of a successful public offering.

The successful pre-IPO round signals a robust level of interest in Urban Company’s future prospects. The substantial valuation assigned further strengthens the narrative of its strong market position and growth trajectory. This development will be closely watched as Urban Company moves forward with its IPO plans. The success of this offering could set a precedent for other similar companies in the burgeoning Indian tech sector.