Accel eyes long game with Urban Company, even after partial IPO exit

Abhinav Chaturvedi, Partner at Accel, said the firm sold part of its stake during Urban Company’s initial public offering (IPO) but continues to hold a significant share. “We had to sell at the IPO because the company is profitable, but we want to keep the 7% for as long as we can,” he said.Chaturvedi explained that Accel first invested in Urban Company at a very early stage, when “it was just three founders.” He noted that the company benefited from India’s shift to mobile-first platforms a decade ago and now faces most of its competition from the unorganised sector.

On growth prospects, he said Urban Company has “a clear operating leverage playing out” and should balance expansion with profitability. He pointed to opportunities in the core services business, hardware and consumer products, and new categories such as Insta Health.

Urban Company shares were listed at ₹162.25 on Wednesday, about 60% above the issue price of ₹103. The grey market premium before listing had indicated a 51% higher debut price.Chaturvedi also highlighted the constraints of running a venture fund, with a typical life of 13 years. “We are 10 years into the fund. So there’s clearly a three-year window, at least for us,” he said.

Also Read | India’s IPO Freeze: ₹1.47 lakh cr on ice as Ather, LG, Urban Company, Tata Capital hit speed bumpsLooking ahead, Accel sees potential in new technology areas such as deep tech, robotics, and AI. The firm has backed companies including Accel Quant in quantum computing and Posha in robotics.

On recent exits, he noted, “We’ve had four IPOs – Swiggy, Blackbuck, Bluestone Jewellery and Urban Company in the last 10 months.” More are expected soon, with Curefoods India, Amagi Media Labs, and Captain Fresh already filing draft papers.

For the full interview, watch the accompanying video

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