Urban Company is considering a fresh fundraise just over a year after its September 2025 IPO, as it continues investing in its instant household services vertical, InstaHelp. The company’s board will meet on October 16 to discuss raising funds through equity shares or convertible securities via preferential allotment, private placement, QIP, or other permissible modes, according to an exchange filing reported by inc42.com.
The fundraise proposal coincides with Urban Company’s scheduled release of its Q2 FY27 financial results on the same day. The company has been expanding InstaHelp despite intensifying competition from rivals Snabbit and Pronto. InstaHelp’s growth has weighed on Urban Company’s profitability, contributing to a consolidated net loss of ₹235 crore in FY26 compared to a net profit of ₹240 crore in FY25. Operating revenue grew 34% year-on-year to ₹1,692 crore in FY26, with Q1 FY27 revenue rising 44% to ₹528 crore.
InstaHelp’s revenue increased 26% quarter-on-quarter to about ₹11 crore in Q1 FY27, but its adjusted EBITDA loss widened to ₹132 crore from ₹119 crore in Q4 FY26. Excluding InstaHelp, Urban Company reported an adjusted EBITDA profit of ₹67 crore in Q1 FY27. The losses from InstaHelp have been a drag on the company’s overall profitability, reflecting the challenges of scaling instant household services amid competitive pressures.
Urban Company’s board meeting on October 16 will determine the specifics of the fundraise, which could be executed in one or more tranches. The company’s Q2 FY27 earnings release on the same day will provide further insight into the financial impact of InstaHelp and the broader business performance.