Urban Company reported a loss of Rs 346 per order for its InstaHelp quick home services segment in the first quarter of fiscal year 2027, a 23% improvement from the Rs 447 loss in the previous quarter, according to a shareholder letter from founder and CEO Abhiraj Singh Bahl. The average order value (AOV) declined to Rs 138 from Rs 150 as the company lowered prices to compete with rivals like Snabbit and Pronto.
The InstaHelp business processed 3.82 million orders during the June quarter, marking a 43% sequential increase. Despite the growth in order volume, the segment posted an adjusted EBITDA loss of Rs 132 crore. Bahl stated that for InstaHelp to break even, the AOV needs to reach around Rs 300. He explained that sustainable growth requires service professionals to earn between Rs 130-160 per hour, with a maximum utilization of 140-150 hours monthly, assuming six-hour workdays over 25 days.
The decline in AOV reflects intense competition in the quick home services market, where rivals have pressured prices. Urban Company’s strategy to lower prices aims to acquire customers but has compressed margins. The company remains optimistic about InstaHelp’s potential despite some competitors expecting the AOV to stay low. The break-even target highlights the challenge of balancing affordable pricing with profitability in this segment.
Urban Company’s next earnings update will provide further clarity on InstaHelp’s path to profitability, with the segment’s performance closely watched after processing nearly 4 million orders in Q1 FY27 and sustaining a significant adjusted EBITDA loss.