Stories
Urban Company Reinvests Margins Into Marketing As Customer Acquisition Jumps
- •Urban Company reported a 28% year-on-year increase in new-user acquisition for its India Consumer Services business in the July-September quarter.
- •Net transaction value rose 26.3% to ₹963 crore, while net revenue grew 28% to ₹336 crore.
- •The InstaHelp offering saw a 63% sequential rise in orders, becoming a major customer acquisition channel for the platform despite near-term losses.
- •The company is shifting towards an Instant fulfilment model delivering services within 30 to 60 minutes to improve consumer proposition.
- •Urban Company's board approved a proposal to raise up to ₹2,500 crore in primary capital to fund further growth and market expansion.
Key Questions Answered
In the July-September quarter, Urban Company's India Consumer Services business recorded a 28% year-on-year increase in new-user acquisition, bringing first-time users to 760,000. Net transaction value rose 26.3% to ₹963 crore, net revenue grew 28% to ₹336 crore, and annual transacting users increased 22.4% to about 8.6 million.
InstaHelp focuses on frequent household-help requirements, with orders growing 63% sequentially to 6.2 million in Q2 FY27 and NTV increasing 34% quarter on quarter to ₹71 crore. It accounts for approximately 45% of new platform users in operating micro-markets, though it recorded an adjusted EBITDA loss of ₹174 crore as the company prioritizes market leadership.
Urban Company's board approved a proposal to raise up to ₹2,500 crore in primary capital, which will provide flexibility to invest across core India services, international operations, Native, and InstaHelp. The company aims for consolidated adjusted EBITDA breakeven by Q3 FY28 and targets an adjusted EBITDA of ₹1,000 crore by FY31.
