Accel India strikes gold with Urban Company IPO

Accel banks ₹390 crore from early bet on Urban Company after blockbuster IPO

by e4m Staff
Published: Sep 17, 2025 1:17 PM | 2 min read

One of the earliest backers of Urban Company, Accel has cashed out big following the startup’s stellar IPO debut. The venture capital firm, renowned for its early bet on Facebook, sold shares worth up to ₹390 crore through the offer-for-sale (OFS) in Urban Company’s listing.

Accel first backed Urban Company in 2015, acquiring shares at an average price of ₹3.77 per share. With the IPO priced at ₹103 per share, the stake that originally cost ₹14.3 crore is now valued at ₹390 crore, delivering an impressive 27x return, according to a report by ET.

The report further revealed that Accel’s total investment in Urban Company amounted to ₹55 crore, giving it 14.56 crore shares. At current IPO valuations, Accel’s remaining stake is now worth over ₹1,100 crore, contributing to a total holding value of around ₹1,500 crore.

This exit adds another feather to Accel’s cap, reinforcing its reputation for high-profile, successful investments. Accel had famously backed Facebook in its early days, turning that investment into an 800x return when the social media giant went public in 2012. In India, the Urban Company windfall bolsters Accel’s portfolio of homegrown success stories, which also includes stakes in startups like Acko and Cult.fit.

Accel first partnered with Urban Company in January 2015, even before the company was officially registered. “There was no company, just three founders and a pitch deck. But we liked the team the most, articulate, clear, and focused on creating a mobile-first consumer experience as India transitioned from web to mobile,” wrote Accel in a blog reflecting on the journey earlier today.

Urban Company’s IPO saw overwhelming demand over its three-day subscription period, being oversubscribed 103.6 times, led largely by QIBs and non-institutional investors. The ₹1,900-crore IPO included a ₹472-crore fresh issue and a ₹1,428-crore offer-for-sale, with existing investors such as Bessemer India, Elevation Capital, and Tiger Global selling part of their holdings.

The stock opened today at ₹162.25 on the NSE, compared to the issue price of ₹103 per share, while on the BSE, it started at ₹161, marking a 56% gain.