Urban Company Limited has approved a proposal to raise up to ₹25 billion through equity shares and convertible securities, including a qualified institutional placement. The board decision on October 16, 2026, remains subject to shareholder and regulatory clearances. The home services platform plans to use the fresh capital to scale InstaHelp, strengthen its competitive position, and pursue selective inorganic opportunities.
Fundraise Structure and Strategic Intent
The company said the raise may be executed through one or more routes, including a preferential allotment, private placement, and qualified institutional placement. Terms of the issue have not yet been finalized, and the proposal requires shareholder approval along with other regulatory consents. The primary objective is to support the expansion of InstaHelp, which faces growing competition from Snabbit and Pronto in the instant domestic help market.
Quarterly Financial Performance
Urban Company reported consolidated net revenue of ₹5.37 billion for the second quarter, a 41% increase from ₹3.80 billion a year earlier. Net transaction value grew 39% year over year to ₹14.32 billion, while orders delivered reached 15.1 million, up 103% year over year. The consolidated net loss widened to ₹1.83 billion from ₹593 million in the same quarter last fiscal year.
For the first half of FY27, operating revenue increased 42.6% to ₹10.66 billion from ₹7.47 billion in the year-ago period. The company's net loss for the six-month period expanded to ₹2.75 billion from ₹524 million in H1 FY26. Annual transacting users reached nearly 10 million, up 35% year over year, reflecting stronger new user acquisition and repeat behavior.
InstaHelp Investments and Competitive Intensity
InstaHelp fulfilled 6.2 million orders in the quarter, a 63% sequential increase, and generated net transaction value of ₹710 million, up 34% from the previous quarter. Net order value declined to ₹114 from ₹138, reflecting introductory pricing for new users and competitive intensity. The segment recorded an adjusted EBITDA loss of ₹1.74 billion for the quarter, reflecting lower pricing and supply built ahead of festive demand.
Despite heavy investment, InstaHelp's unit economics improved as network density increased during the quarter. The adjusted EBITDA loss per order narrowed to ₹279 from ₹346 in Q1 FY27, a sequential improvement of about 19%. Management described InstaHelp as a winner-takes-most category, emphasizing that the spending is intended to cement leadership, acquire customers in new micro-markets, and strengthen long-term market positioning.
Core Profitability and Segment Highlights
Excluding InstaHelp, adjusted EBITDA rose 213% year over year to ₹300 million, demonstrating operating leverage in the core business. India Consumer Services margin improved 110 basis points to 3.5% of net transaction value, while International margin expanded 190 basis points to 2.0%. Native narrowed its loss margin by 220 basis points to 6.8% of net transaction value.
International net transaction value grew 66% year over year to ₹2.67 billion, with the UAE business recovering from earlier disruption and Singapore delivering profitable growth. Native net transaction value rose 35% to ₹1.32 billion, supported by premium product launches and a 4.3% sequential rise in water purifier average selling prices. Tier 2 cities grew net transaction value about 37% year over year, emerging as a second growth engine.
Average net earnings in-hand for active service professionals reached ₹30,708 per month in H1 FY27, up 10% from ₹27,950 a year earlier. The top 5% of professionals by services delivered earned ₹56,731 per month. Partner earnings and benefits continue to support service professional engagement across the platform, reflecting the company's broader focus on service quality and retention.
Urban Company closed the quarter with ₹19.01 billion in cash and treasury investments, and management reiterated its target of adjusted EBITDA breakeven by Q3 FY28. The proposed fundraise provides strategic flexibility to invest across India, International, Native, and InstaHelp without trading off one business for another. As competition intensifies in the instant help segment, the fresh capital is expected to support aggressive customer acquisition and long-term market leadership.