Prosus NV, known for its massive stake in Tencent Holdings Ltd., said it more than doubled its stake in Urban Company ahead of the Indian startup’s listing, and is now one of the firm’s biggest shareholders.
The Amsterdam-based technology group now owns 7.35% of Urban Company after adding about 4% in the latest deal, Prosus India Ecosystem head Ashutosh Sharma said in an interview. Prosus has invested $139 million in the company, which has been in operation since 2021 and offers services from carpentry to house cleaning and masseurs, Sharma said.
Urban Company surged as much as 74% in its Mumbai trading debut on Wednesday, valuing the firm at about $2.8 billion. The initial public offering was a hundred times oversubscribed, making it one of India’s most popular deals of the year.
“The demand for Urban Company has been so high,” said Sharma. “We wanted more allocation and could not get a lot more.”
This was the third IPO in India that Prosus had participated in over the past 12 months, said Sharma. The group has invested as much as $8.6 billion in India, and has stakes in a number of companies preparing to come to market including e-commerce platform Meesho, said Sharma.
Prosus expects to benefit from upside for Indian businesses with a local and consumer focus as the country faces steep tariffs on its exports imposed by President Donald Trump. Urban, which lets customers book services on its platform, operates in 51 cities across three countries and has turned profitable this year, Sharma said.''
The Dutch company is hoping to replicate its blockbuster investment, through Naspers Ltd., in China’s Tencent in 2001, when it paid $34 million for a 50% stake. Today, it owns 24% of the Chinese tech giant, which has a market value of $759 billion. It’s made a number of big bets in e-commerce and most recently acquired online food delivery firm JustEat Takeaway.com in Europe.
Sourrce Name : Economic Times