Urban Company reported a Rs 182.5 crore Q2 FY27 net loss as revenue rose 41.4%. The board also approved a fundraise of up to Rs 2,500 crore. The company said, "The proposed raise of up to Rs 2,500 crore is about flexibility: it lets us invest with conviction across each."

Urban Company reports a Rs 182.5 crore Q2 FY27 net loss as revenue rises 41.4%. The board also approves a fundraise of up to Rs 2,500 crore.

The company reported an adjusted Ebitda loss of Rs 144 crore for the September quarter, attributing it to a "deliberate" investment of Rs 174 crore in InstaHelp. For the first half of FY27, consolidated revenue from operations rose 42.6% to Rs 1,065.6 crore from Rs 747.3 crore a year ago. Net loss widened to Rs 274.6 crore from Rs 52.4 crore in the year-ago period.

The company's InstaHelp segment, which caters to daily cleaning and housekeeping needs, reported revenue of Rs 20.5 crore in the September quarter, compared with Rs 1.43 crore a year earlier. However, the segment's loss widened to Rs 73 crore from Rs 43 crore.

India consumer services, excluding InstaHelp, remained the largest revenue contributor, generating Rs 336.38 crore during the quarter, up from Rs 262 crore a year earlier. The segment improved to a profit of Rs 43.39 crore from Rs 10.13 crore.

Meanwhile, the board granted in-principle approval to explore residential air conditioners as a new line of business under its Native brand. "The commercial launch and any related capital expenditure will require further evaluation and specific board approval," said the company.

Board nod to raise up to Rs 2,500 crore

Urban Company's board has approved a proposal to raise up to Rs 2,500 crore. The fundraising may be undertaken through preferential allotment, private placement, a qualified institutions placement (QIP) or any other permissible mode under applicable regulations, said the company.

"The proposed raise of up to Rs 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," Urban Company said in a letter to shareholders. The fundraise approval comes at a time when the Gurugram-based home services firm is facing intense competition in the space, especially for instant help services.