Prosus Ventures to double down on Urban Company with $30M investment
Prosus, a prominent global technology investor, has increased its stake in Urban Company, India’s leading home services platform. The Dutch company intends to invest approximately $30 million in a transaction to purchase shares from Bessemer Venture Partners, allowing Bessemer to lower its holding while Urban Company’s valuation remains robust at $2.6 billion. Typically, such transactions result in a slight reduction in valuation, but Urban Company’s steadiness indicates that investors are optimistic about its future.
In July, Accel Partners and Elevation Capital sold shares to Dharana Capital for around ₹400 crore. However, Accel and Elevation have decided to hold their shares until Urban Company’s IPO next year.
Urban Company is one of the few valuable assets in the current market, making it an attractive opportunity for Prosus to invest more before the company goes public. Unlike Prosus, many early investors in India are selling their stakes as their funds are reaching the end of their investment cycles. Firms like Orios Venture Partners, Peak XV Partners, and Chiratae Ventures are all looking to sell shares through similar deals.
Prosus is also moving beyond technology. It recently invested $100 million in Vastu Housing Finance and is considering a $40 million stake in Bluestone Jewelry. Despite some setbacks with investments like Byju’s and Pharmeasy, Prosus is focusing on its successes, like its investment in Swiggy, another Indian company preparing for an IPO. Urban Company is seen as a key opportunity for Prosus to benefit from growth when the company goes public.
Urban Company, founded almost 10 years ago by Abhiraj Bhal, Raghav Chandra, and Varun Khaitan, last raised funds in 2021 from major investors like Tiger Global and Dragoneer. The company is already preparing for its upcoming IPO, setting the stage for its next big step.