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Urban Company Eyes Fresh Fundraise A Year After IPO As InstaHelp Losses Mount

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Urban Company Eyes Fresh Fundraise A Year After IPO As InstaHelp Losses Mount

Home services company Urban Company is considering a fresh fundraise a little over a year after its stock market debut in September 2025, amid continued spending on its instant household services vertical InstaHelp.

The company’s board will meet on Friday (October 16) to consider raising funds through equity shares or securities convertible into equity shares, in one or more tranches, it said in an exchange filing.

The routes under consideration include a preferential allotment, private placement, QIP, or another legally permissible mode, or a combination of these.

Urban Company is also scheduled to release its Q2 FY27 numbers on the same day.

The fundraise proposal comes as the company continues to invest in InstaHelp amid intensifying competition from Snabbit and Pronto. The vertical’s expansion weighed on Urban Company’s profitability in FY26 and remained a drag in Q1 FY27.

Urban Company reported a consolidated net loss of ₹235 Cr in FY26, compared with a net profit of ₹240 Cr in FY25, while operating revenue grew 34% YoY to ₹1,692 Cr.

In Q1 FY27, operating revenue rose 44% YoY to ₹528 Cr, while its consolidated adjusted EBITDA loss narrowed to ₹65 Cr from ₹98 Cr in the preceding quarter. Excluding InstaHelp, the company reported an adjusted EBITDA profit of ₹67 Cr.

InstaHelp’s revenue grew 26% QoQ to about ₹11 Cr, while its adjusted EBITDA loss widened to ₹132 Cr from ₹119 Cr in Q4 FY26. However, its adjusted EBITDA loss per order narrowed to ₹346 from ₹447 over the same period.

Management has said spending on InstaHelp will remain elevated as the company seeks to strengthen its position in the category.


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