Urban Company Seeks Funding as InstaHelp Business Operates at a Loss
Home services marketplace Urban Company is planning to raise fresh capital. The company's rapid home help service, InstaHelp, is currently operating at a loss and impacting overall profitability.
Indian home services platform Urban Company is preparing to raise new capital as its nascent InstaHelp business continues to incur losses. The company's board is scheduled to meet to consider various fundraising options, including Qualified Institutional Placements (QIP) and other private placements.
While Urban Company has not disclosed the exact amount it aims to raise, reports suggest the platform is looking to secure between Rs 2,000 to Rs 2,500 crore (approximately $250-310 million USD). Around 40% of these funds are earmarked to support the InstaHelp unit, with the remainder intended for potential acquisitions and to bolster the company's core home services operations and its Native brand.
Urban Company, which raised $50 million during its IPO last September, had cash reserves of Rs 2,019 crore (approximately $250 million USD) as of June 2026. InstaHelp, launched in FY26, posted an adjusted EBITDA loss of Rs 132 crore (approximately $16 million USD) in Q1 FY27, an 11% increase from the previous quarter.
This loss impacted Urban Company's overall profitability, resulting in a consolidated adjusted EBITDA loss of Rs 65 crore (approximately $8 million USD). The company incurred a loss of Rs 346 (approximately $4.3 USD) per InstaHelp order in Q1 FY27. The average order value (AOV) declined to Rs 138 from Rs 150 due to increased competition, forcing the company to lower prices to acquire customers.
Urban Company does not expect InstaHelp to become profitable for at least five years, targeting break-even by FY31. The focus remains on building network density and market share. The company faces significant competition from Pronto and Snabbit, which have also secured substantial investments in the rapid home services sector.