Prosus backed Urban Company made a blockbuster debut on the National Stock Exchange of India on Wednesday, with shares in the company soaring more than 70% on its first day of trade.
This marks the second initial public offering (IPO) of a company in the Naspers portfolio under CEO Fabricio Bloisi.
Urban Company officially began trading its shares on the National and Bombay stock exchanges of India (NSE and BSE) on Wednesday, valuing the company nearly $3bn (R52.2bn).
For years, Naspers and its Amsterdam-listed unit Prosus have been scrambling to unlock value from its vast portfolio of businesses in food delivery, classifieds, fintech and education, estimated to be worth more than $30bn but not fully reflected in the Prosus share price. The value of units such as Swiggy, Brazil’s iFood, Germany’s Delivery Hero and India’s PayU are dwarfed by the group’s $100bn stake in Tencent, the China-based technology and entertainment conglomerate.
Akin to Sweepsouth in SA, which is also backed by Naspers, Urban Company, formerly known as UrbanClap, is a technology platform that has become India’s largest marketplace for at-home services.
Founded in 2014, the company’s core business model involves connecting consumers with a wide range of vetted, trained and professional service providers for everything from beauty and wellness treatments to home repairs, cleaning and maintenance. It has a presence across dozens of cities in India and internationally in countries such as the UAE and Singapore.
Prior to listing, Urban Company had been valued $1.8bn. It has about 6.8-million annual active users, being served by 47,800 monthly active professionals across 51 cities.
Prosus initially invested $84m in the company between April and May 2021. It now has a 7.35% stake, valued at $132m pre-IPO, which will come down to 7.13% post IPO.
Unlike fellow technology investors, including Google, Facebook and Amazon, Prosus, which is valued at R2.73-trillion on the JSE, has focused its strategy on conquering emerging-market countries. One country in particular, India, which boasts a population of more than 1.45-billion people, stands out as part of the mission.
In November 2024, Swiggy — another Prosus investment in India — was listed on the NSE and BSE. On the first day of trading, Prosus, the company’s largest investor, sold shares worth more than $500m, with the company being valued at $11.3bn.
Swiggy is an online food ordering and delivery platform that connects consumers to a large network of restaurants and stores across India.
Outside Swiggy and Urban Company, Prosus is preparing to spin off PayU. The group previously told Business Day it intended to have the unit in a “listable” form by the end of 2024.
PayU, founded in 2002, is a digital payments service provider with a presence in more than 50 markets.
In early 2023, Prosus agreed to sell PayU’s Global Payments Organisation (GPO) to UK-based Rapyd for $610m cash as part of efforts to streamline the group’s fintech operations.
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