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Urban Company eyes Rs 2,500 crore QIP amid cash-intensive househelp battle

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Urban Company eyes Rs 2,500 crore QIP amid cash-intensive househelp battle

The Gurugram-based company, which went public in September 2025, is locked in a battle with Lightspeed-backed Snabbit and General Catalyst-backed Pronto in the high cash burn instant house help industry.

The board of home services platform Urban Company will meet on October 16 to consider a fresh fundraise, according to an exchange filing. According to sources, it is planning to raise Rs 2,000-2,500 crore via a qualified institutional placement (QIP). The Gurugram-based company, which went public in September 2025, is locked in a battle with Lightspeed-backed Snabbit and General Catalyst-backed Pronto in the high-cash-burn instant househelp segment. Snabbit has raised a total of $112 million, including a $56-million round in April 2026. Pronto, meanwhile, has raised more than $50 million. The companies are competing in India’s home services market, which was valued at $60 billion in 2024-25 and is expected to grow to $100 billion by 2029-30, according to brokerage firm Jefferies. Advt

Urban Company raised Rs 472 crore through its initial public offering (IPO) last year. As of June 30, the company had Rs 2,019 crore in cash on its books, even as its InstaHelp business continued to weigh on its bottomline. “About 40% of the fresh funds is expected to be allocated towards building a warchest for the InstaHelp business, while remaining is likely to be deployed towards inorganic expansion and other businesses such as India core home services, international and Native (its line of home devices),” one of the sources cited above said. Urban Company did not respond to ET’s queries.


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