Leading global venture capital firm Accel has made a huge return on its investment in the recent IPO of Urban Company. The Silicon Valley-based firm bagged a 27x return on its early investment in the home service startup.
Accel is one of the earliest investors in Urban Company. The VC firm has invested a total of Rs 55 crore in the startup and received a total of Rs 14.56 crore. As Urban Company is listed at a 57% premium to its issue price of Rs 103, Accel’s stake is now worth Rs 1,500 crore.
Accel stake sale in Urban Company
Accel offloaded a small part of its total holding in Urban Company through the IPO. While the VC firm’s total investment value exceeds 1,500 crore, it offloaded shares worth Rs 390 crore.
When Accel invested in Urban Company, the average value of a share was Rs 3.77. At the IPO price, Accel received 27 times return on its investment.
Urban Company IPO: Other key sellers
Besides Accel, other major investors, including Eleven Capital, Internet Fund V Pte and Bessemer India Capital, also offloaded a stake of their investment in Urban Company.
Eleven Capital sold a stake worth Rs 346 crore in Urban Company IPO, second second-highest sale under the offer for sale. The average cost of Urban Company shares was Rs 5.39 when Eleven Capital made an investment.
Bessemer India purchased a stake in Urban Company when its average share price was 7.14. The company sold a stake worth Rs 173 crore in the IPO.
Internet Fund V Pte saw the lowest return among the major investors of Urban Company. As the VC firm invested in Urban Company at a share price of Rs 61.55, it got a 1.6 times return on its investment. In the IPO, Internet Fund V Pte sold a stake worth Rs 303 crore.