Dharana Capital Acquires Significant Stake in Urban Company

Dharana Capital, an offshoot of Vy Capital, has made a substantial investment by acquiring secondary shares valued at fifty million dollars from employees, early investors, and founders of Urban Company. This strategic investment forms part of a larger secondary funding round that also saw participation from Prosus, totaling sixty-three million dollars.

Employee Stock Ownership Program (ESOP) Buyback

In addition to the secondary share purchase, Dharana Capital acquired twenty-five million dollars worth of shares through an ESOP buyback program conducted in May of this year. This initiative provided an opportunity for Urban Company employees to monetize a portion of their equity holdings.

Board Representation and Strategic Partnership

Following the completion of the secondary transaction, Vamsi Duvvuri, the founder and managing partner of Dharana Capital, has been appointed as a non-executive director on the board of Urban Company. This strategic move signifies a strong partnership between the two entities.

Empowering Employees Through ESOPs

Urban Company has demonstrated a commitment to employee ownership by granting ESOPs to one thousand five hundred and ninety-three employees. Approximately seven hundred and eighty-four employees participated in five ESOP buyback programs, collectively liquidating shares worth three hundred and six crore rupees, equivalent to thirty-seven million dollars.

Valuation and Financial Performance

Urban Company’s last ESOP liquidity program, concluded in December 2021, valued the company at two point eight billion dollars. However, the recent buyback program suggests a valuation range of two point two billion to two point five billion dollars.

Despite operating in a challenging market environment, Urban Company has achieved significant financial milestones. The company reported revenue of six hundred and thirty-seven crore rupees in the financial year 2023, while successfully reducing losses by forty point one percent during the same period. Notably, Urban Company achieved profitability at the profit before tax level in April and has sustained profitability in the subsequent quarter.

Expanding Geographic Footprint

Urban Company has established a strong presence across sixty-two cities in India, the United Arab Emirates, Singapore, and Saudi Arabia. The company’s success is underpinned by a robust network of over fifty-five thousand carefully selected service professionals.

Dharana Capital’s investment in Urban Company is a testament to the company’s growth potential and its ability to deliver exceptional value to its customers and shareholders.