Urban Company approved a Rs 2,500 crore fundraise to boost growth and scale its InstaHelp business. The firm said, “The purpose of the raise is flexibility.” This capital will help the company fight rivals like Snabbit and Pronto. It also plans to use these funds for expansion and new opportunities.
Home services firm Urban Company has approved a fresh fundraise of up to Rs 2,500 crore, seeking additional capital to accelerate growth across its businesses and cement market leadership in its instant home services business InstaHelp, which is facing intensifying competition from rivals Snabbit and Pronto.
The company will seek shareholder approval to raise the primary capital, according to its Q2 FY27 shareholders’ letter. Its board had earlier scheduled a meeting on October 16 to consider raising funds through equity shares or convertible securities, including a qualified institutional placement (QIP), among other routes.
Urban Company held Rs 1,901 crore in cash and treasury investments as of September 30, 2026. Its businesses excluding InstaHelp generated Rs 119 crore in adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) over the nine months ended September, underscoring the cash-generating capacity of its core operations.
“The purpose of the raise is flexibility,” the company said in its shareholders’ letter, adding that its business was materially larger than at the time of listing and growth had accelerated meaningfully.
The capital will allow Urban Company to sustain higher growth in its core business, fund the next phase of expansion in Native, strengthen InstaHelp’s market position through what it described as its most competitive phase, and selectively pursue inorganic opportunities.
The company did not specify how much of the proposed capital would be allocated to each business.
The QIP comes just over one year after Urban Company's public listing, when it raises Rs 1,900 crore in primary capital.
Competition heats up
The proposed fundraise comes as Urban Company faces growing competition in instant home services, with Snabbit and Pronto expanding their operations and spending on customer acquisition to gain market share.
The industry burnt around Rs 150 crore in June, according to figures reported by Moneycontrol. Snabbit reported 1.51 million orders that month, while Urban Company’s InstaHelp also recorded around 1.5 million orders, highlighting the close contest for customers.
Rivals have raised fresh capital to finance their expansion. Snabbit raised $56 million in April, while Pronto raised a $20 million extension to its Series B round in May, taking the total funding in that round to $45 million.
Urban Company said its profitability targets remain unchanged. It expects InstaHelp to achieve adjusted EBITDA breakeven by the third quarter of FY28 and is targeting adjusted EBITDA of Rs 1,000 crore by FY31.
The company said it remained on track to meet the targets, even as it invests in growth across its businesses and navigates heightened competition in instant home services.
Urban Company reported a net loss of Rs 182.5 crore in the second quarter of FY27, compared with a loss of Rs 59.3 crore in the year-ago period, according to regulatory filings.
Revenue from operations rose 41 percent year-on-year to Rs 537.3 crore from Rs 380 crore a year earlier. Revenue also increased from Rs 528.3 crore in the preceding quarter, supported by growth across its India, international and smart home products businesses.