Urban Company Seeks New Funding Amid InstaHelp Losses
Home services firm Urban Company is exploring a fresh capital raise, just over a year after its market debut, as investments in its rapid home services arm, InstaHelp, continue to incur losses.
Home services provider Urban Company is considering a new fundraising round, a little over a year after its market debut in September 2025. The company aims to secure additional capital, particularly for its instant household services vertical, InstaHelp.
The company's board is scheduled to meet on Friday, October 16, to deliberate on raising funds through equity shares or convertible securities. Potential avenues include preferential allotments, private placements, and qualified institutional placements (QIP).
This move comes as Urban Company prepares to release its Q2 FY27 financial results on the same day. The significant investment in InstaHelp, facing competition from players like Snabbit and Pronto, has impacted the company's overall profitability.
Urban Company reported a consolidated net loss of ₹235 crore for FY26, a shift from a net profit of ₹240 crore in FY25, while operating revenue increased 34% year-on-year to ₹1,692 crore. In Q1 FY27, operating revenue grew 44% year-on-year to ₹528 crore, with the consolidated adjusted EBITDA loss narrowing to ₹65 crore.
InstaHelp's revenue grew 26% quarter-on-quarter to approximately ₹11 crore, but its adjusted EBITDA loss widened to ₹132 crore. Management anticipates sustained investment in InstaHelp for at least the next two years, with a projected break-even point around FY31.