Stories
Urban Company Approves Rs 2,500 Crore QIP to Fuel Growth and Fight Rivals
- •Urban Company has approved a fresh fundraise of up to Rs 2,500 crore through a qualified institutional placement to accelerate business growth and scale InstaHelp.
- •The capital raise aims to strengthen the company's position against rising competition in instant home services from rivals like Snabbit and Pronto.
- •Core operations excluding InstaHelp generated Rs 119 crore in adjusted EBITDA over the nine months ending September, showcasing strong cash-generating capacity.
- •Urban Company expects InstaHelp to achieve adjusted EBITDA breakeven by the third quarter of FY28 and targets Rs 1,000 crore in adjusted EBITDA by FY31.
- •The company reported a 41 percent year-on-year increase in operating revenue to Rs 537.3 crore for the second quarter of FY27, alongside a net loss of Rs 182.5 crore.
Key Questions Answered
Urban Company approved a fresh fundraise of up to Rs 2,500 crore through a qualified institutional placement (QIP) or other routes to accelerate business growth, fund expansion in Native, strengthen its instant home services business InstaHelp against rising competition, and selectively pursue inorganic opportunities.
Urban Company's instant home services business, InstaHelp, is facing intensifying competition from rivals Snabbit and Pronto, both of which have been expanding operations, burning capital, and raising fresh funds to capture market share.
Urban Company reported a net loss of Rs 182.5 crore in the second quarter of FY27 compared to a loss of Rs 59.3 crore in the previous year, while its operating revenue grew 41 percent year-on-year to reach Rs 537.3 crore.
