Tiger’s globally supported city companies are shrinking its gradual subsidiary in Saudi Arabia because it is economically unsustainable, according to its Red Herring draft prospectus (DRHP).
The home services company said it moved its Saudi operations to a joint venture established in October 2024 with the aim of reducing its gradual decline in subsidiary Arab City Information Technology (UCAIT).
UCAIT reports pre-tax losses ₹In the nine months ended December 2024, 2.345 billion ₹8.29 million in the same period last year. Its financial year 2023-24 is ₹140,800 million, 2022-23 ₹1.777 billion, at 2021-22 ₹101,000 million.
“We have already marketed through the joint venture entity (i.e., Khadmat al-Munzal), effective January 1, 2025 with the aim of finally ending the gradual subsidiary Arab Information Technology (“UCAIT”),” DRHP said, “We have already started operations.
DRHP recommends that UCAIT is the earlier operating unit of city companies in Saudi Arabia, as its independent finance suggests.
City companies have announced the expansion of city companies to Saudi Arabia through a joint venture (SMASCO) with Saudi Human Resources Solutions Corporation (SMASCO). In October 2024, the two companies launched Khadmat Al-Munzal as a marketing company, aiming to strengthen and enhance the family service landscape in the Kingdom of Saudi Arabia.
Although not explicitly stated, timelines and financial details suggest that the joint venture may replace UCAIT with this capability.
It currently operates in three international markets: United Arab Emirates (UAE), Singapore and the Kingdom of Saudi Arabia. The company previously operated in Australia, but after three years of activity, the market left the market in 2022.
Urban Company did not immediately respond to Mint's email inquiries.
Public List
It submitted DRHP ₹On April 28, the Securities and Exchange Commission of India (SEBI) issued 190 billion initial public offerings (IPOs). The list includes a new question ₹4.29 million and worth selling quote ₹14.71 million.
OFS will see partial exits from early supporters. Accelerate India will become the largest seller, aiming to improve to ₹4.33 billion, then Elevation Capital ₹3.46 million, Tiger Global ₹303 million, vyc11 at ₹216 million, Besemer of India ₹173 million.
The shares of Urban Company's co-founders (Abhiraj Singh Bhal, Raghav Chandra and Varun Khaitan) are roughly worth it in the leadership of the IPO ₹7.8 million to secondary transactions were conducted between September 2024 and March 2025. These deals are targeted at existing backers, including Prosus Ventures, Dharana Capital, Think Think Investments, and more. The founder will not participate in the OFS component of the IPO.
In terms of financial performance, city companies report pre-tax profit ₹271 million in the first nine months of 2024-25 ₹578 million were the same period last year.
Its co-founder and CEO Abhiraj Singh Bhal acknowledged that international operations such as Saudi Arabia and Singapore will take “more time” to achieve profitability in media interactions at the 2024 CII Annual Business Summit.
Barr noted that the UAE market is approaching branches given the company's relatively new entry and demand for deeper localization, but Saudi Arabia is still in an “investment model.”
He also stressed the complexity of international expansion, warning that global ambitions could shift focus to India’s broad and rapidly growing domestic market.
