Urban Company has secured board approval to raise Rs 2,500 crore, marking its first fundraise since listing on Indian stock exchanges last September. According to MediaNama, the capital will primarily support the expansion of InstaHelp, the company’s quick home services arm, as it seeks to gain market share in a competitive category. The firm stated that the investment is a strategic choice to cement leadership in what it describes as a winner-takes-most market.
During its Q2 FY27 analysts’ call, co-founder and CEO Abhiraj Singh Bhal explained that InstaHelp serves as a high-frequency layer for the platform. In micro-markets where the 10-minute service is offered alongside core services, roughly 45% of new users are now acquired through InstaHelp. Bhal noted that households using this service open the application more frequently, making it harder for single-category competitors to replicate the user habit. Consequently, the company views InstaHelp’s value as exceeding its standalone profit and loss statement.
Financially, the segment continues to impact overall profitability. Urban Company reported a consolidated adjusted EBITDA of negative Rs 144 crore for Q2 FY27, attributed almost entirely to a Rs 174 crore investment in InstaHelp. Excluding InstaHelp, the company’s adjusted EBITDA was positive at Rs 30 crore. While the loss per InstaHelp order improved to Rs 279 from Rs 346 in the previous quarter, management acknowledged that current order volumes rely on artificially low prices. Bhal cautioned that a downward correction in orders is expected once pricing normalizes, with steady-state economics requiring a net order value of approximately Rs 300.
The company is also pursuing inorganic growth through mergers and acquisitions to consolidate markets or enter new categories within India. Additionally, Urban Company plans to launch residential air conditioners under its in-house brand, Native, citing the category’s large total addressable market and high servicing volume. MediaNama reported that the firm’s annual transacting users rose to 9.96 million in the quarter, while total orders increased to 15.1 million.