Listed home services major Urban Company’s board approved a proposal to raise up to ₹2,500 Cr yesterday, seeking to shore up its war chest at a critical juncture.

On one hand, Urban Company’s instant home services business, InstaHelp, is facing stiff competition. Fighting rivals Snabbit and Pronto for a slice of the market has turned out to be an expensive affair, with spending on InstaHelp contributing to Urban Company’s widening losses.

At the same time, the company is looking to expand its product lineup under the Native brand by entering the residential air conditioner market. Meanwhile, its bread and butter consumer services continue to generate stable results.

Urban Company’s financials reflect these pressures. The company reported an adjusted EBITDA loss of ₹144 Cr in Q2 FY27, driven by a ₹174 Cr investment in InstaHelp. Excluding InstaHelp, it reported an adjusted EBITDA profit of ₹30 Cr.

During the quarter, consolidated revenue from operations grew 41.4% YoY to ₹537.3 Cr, while total expenses increased 61.5% to ₹745.7 Cr. Consequently, the company’s consolidated net loss more than tripled to ₹182.5 Cr from ₹59.3 Cr in the year-ago period.

However, the management maintains that Urban Company can meet its profitability targets without the proposed fundraise Yet, the management has rejected the suggestion that the fundraise is necessary to offset InstaHelp’s impact on its financials.

Urban Company has positioned the proposed ₹2,500 Cr fundraise as a means to bolster its balance sheet and provide greater flexibility to invest across its businesses.

“Our ambition is to go beyond being just a home services company and eventually become the trusted home platform for Indian consumers – almost the operating system for the Indian home.

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