Urban Company reported a net loss of ₹182.48 crore in Q2 FY27, up from ₹59.33 crore last year. Revenue grew 41.4% to ₹537.29 crore as the firm invested in InstaHelp. Management said, “Q2 FY27 was a strong quarter for Urban Company with continued growth momentum and margin expansion for our core business.”
Home services platform, Urban Company Ltd widened its consolidated net loss to ₹182.48 crore in Q2 FY27 compared to ₹59.33 crore in the year-ago period as it continued aggressive investments in InstaHelp. Consolidated revenue from operations grew 41.4 per cent to ₹537.29 crore. The company’s board also approved raising up to ₹2,500 crore through the issue of equity shares or other convertible securities via qualified institutional placement (QIP), subject to shareholder approval.
In the shareholders’ letter, the company’s management said, “Q2 FY27 was a strong quarter for Urban Company with continued growth momentum and margin expansion for our core business. At the same time, we continued to invest aggressively in InstaHelp, where unit economics improved despite rapid scale-up.”
On a consolidated basis, net transaction value (NTV) grew 39 per cent y-o-y to ₹1,432 crore. Orders delivered reached 15.1 million, up 103 per cent y-o-y, and annual transacting users reached nearly 10 million, up 35 per cent y-o-y it added.
On the proposed fundraise, the company said, “We are on track to achieve our targets, and are raising capital for strategic flexibility. We closed the quarter with ₹1,901 crore in cash and treasury investment. The business is materially larger than at listing, growth has stepped up, and we now operate three businesses at scale with proven economics.”
‘On track’
“The proposed raise of up to ₹2,500 crore is about flexibility: it lets us invest with conviction across each of them, cement leadership in InstaHelp, and pursue inorganic opportunities selectively, without trading off one for another. We remain on track for adjusted EBITDA break-even by Q3 FY28 and Adjusted EBITDA of ₹1,000 crore by FY31,” it added in its filing.
Revenue from India consumer services business, excluding InstaHelp, rose 28.4 per cent to ₹336.38 crore.
The company’s InstaHelp business, which offers households daily cleaning and housekeeping needs, reported a segment loss of ₹173.12 crore in the quarter, compared with ₹42.91 crore loss a year ago, according to the filing. The segment revenue rose to ₹20.54 crore in Q2 FY27 from ₹1.43 crore in Q2 FY26. Net order value (NOV) declined from ₹138 to ₹114 on competitive intensity and introductory pricing for new users. “InstaHelp’s value to the platform extends beyond its own P&L: it is our highest-frequency offering and a meaningful source of new users for our core services. In this phase of category development we are prioritising market leadership. We expect losses to remain elevated for a few more quarters before they begin to come down,” it added.