The recent stock market debuts of Urban Company IPO and Physics Wallah IPO have not only captured investor interest but also reignited debates around one of India’s toughest challenges: creating enough quality jobs for its rapidly growing youth population. While both startups symbolize innovation, digital growth, and investor optimism, their rise also reveals the growing struggle of India’s young workforce caught between gig work, underemployment, and the race for secure careers.
Urban Company IPO: A Record Market Debut
Urban Company, the home-services marketplace, has been one of India’s most successful IPOs of 2025. The stock surged 62% on debut, delivering the strongest post-listing performance of the year. The company connects millions of households with verified professionals offering services such as cleaning, appliance repair, pest control, beauty and grooming, and handyman work.
This success highlights the growing acceptance of app-based service models in India’s urban centers. Urban Company estimates its total addressable market at $21 billion across 200 cities, a huge opportunity for scaling. Investors are betting on its ability to transform an informal sector into a structured, tech-driven industry. (Bloomberg report)
The intersection of technology and employment is critical in addressing the youth jobs crisis, especially with the recent Urban Company IPO and Physics Wallah IPO paving the way for future innovations in the job market.
The Impact of Urban Company IPO and Physics Wallah IPO on Job Creation
PhysicsWallah IPO: Affordable Education at Scale
Next in line is PhysicsWallah IPO news, one of India’s most awaited public listings. Founded by Alakh Pandey, PhysicsWallah (PW) started as a YouTube channel and quickly became a leading edtech platform with over 100 million students. Its affordable pricing disrupted the coaching industry dominated by costly players in hubs like Kota.
PW now plans to expand into offline and hybrid education centers, investing ₹460 crore in new Vidyapeeth Pathshalas. This move underlines its ambition to bridge digital reach with physical infrastructure, making competitive exam preparation more accessible across India. (SEBI filings)
For millions of students, PhysicsWallah represents not just education but a shot at breaking into elite institutions like IITs or medical schools. However, with 15 million aspirants competing for just 18,000 IIT seats annually, the gap between aspiration and opportunity is staggering.
Gig Economy vs Secure Jobs
While Urban Company and PhysicsWallah symbolize digital disruption, they also highlight the structural employment crisis in India. Most workers joining gig platforms like Urban Company prefer stable factory or corporate jobs. However, India’s manufacturing contribution to GDP has dropped to 13%, its lowest since 1960 (World Bank Data).
Gig workers often face income insecurity, lack of pensions, and limited health benefits. Platforms provide some accident insurance, but not the full suite of social security protections that traditional employment guarantees. This creates a fragile workforce, vulnerable to economic downturns.
👉 Related reading: India’s gig economy growth
External Pressures on India’s Job Market
India’s employment challenges are further intensified by global pressures:
US trade tariffs: American tariffs of up to 50% on Indian exports threaten labor-intensive industries like textiles, home furnishings, and gems (USTR report).
AI disruption: Automation and artificial intelligence are reshaping the IT outsourcing sector, with companies like TCS rumored to cut jobs. (McKinsey Global Institute)
Immigration hurdles: The tightening of H-1B visa rules in the US reduces overseas opportunities for Indian engineers and tech professionals (USCIS official site).
These factors compound domestic job shortages, creating both unemployment and underemployment across India’s labor market.
Multinationals: A Silver Lining
Despite these headwinds, multinational corporations (MNCs) remain a bright spot. Global firms are expanding their research hubs and AI-driven global capability centers in India, offering high-value, white-collar jobs. This helps absorb part of India’s skilled workforce, particularly in tech and engineering.
However, risks remain. US lawmakers are considering a 25% tax on overseas services, which could reduce outsourcing demand. Still, India remains attractive due to its talent pool, cost advantages, and digital ecosystem. (Morgan Stanley research)
👉 Related reading: MNC growth in India
Why India’s Jobs Challenge Matters
The scale of India’s employment issue is massive:
One in five new workers globally over the next decade will be Indian.
At a 60% labor participation rate, the number of jobseekers in India will rise by 1.3% annually.
Current GDP growth of 6.5% is insufficient; experts estimate 12–14% growth is needed to create enough jobs (IMF outlook).
Underemployment worsened during the COVID-19 pandemic when millions of migrant workers returned to villages without stable jobs.
Conclusion
The Urban Company IPO and PhysicsWallah IPO represent the energy and innovation of India’s startup ecosystem. They show how technology can create opportunity and attract investors. Yet, they also underline the bigger employment crisis: millions of young Indians striving for secure, well-paying jobs in a slowing economy.
Without manufacturing revival, global partnerships, and structural reforms, India risks leaving its youth underemployed, even as its startups thrive. The challenge is not just about IPO success, but about building a future where digital innovation translates into sustainable job creation.
