Gurugram-based Urban Company announced plans to enter the residential air conditioner market under its Native brand, which already sells water purifiers and smart locks. The company revealed this move in its recent shareholders letter, highlighting the air conditioner segment as a strategic addition. Urban Company had been exploring this expansion since October 2025, aiming to leverage its existing service infrastructure in the space, according to economictimes.indiatimes.com.
Urban Company’s decision follows a framework requiring new product categories to be service-heavy, solve clear consumer problems, offer premium margins, and integrate with its app-based platform for seamless purchase, installation, and servicing. The company stated that residential air conditioning fits these criteria best, noting it already services millions of AC units annually and has invested in research and development to address product shortcomings. This move positions Urban Company alongside established brands like Samsung, Daikin, Godrej, and Voltas in the AC market, per economictimes.indiatimes.com.
The entry into air conditioners complements Urban Company’s broader growth strategy, which includes a 41% year-on-year revenue increase to Rs 537 crore in Q2 FY27 and a 39% rise in net transaction value to Rs 1,432 crore. Despite a widened net loss of Rs 182 crore due to investments in its quick services business InstaHelp, the company’s adjusted EBITDA excluding InstaHelp improved significantly. Urban Company’s expansion into new product categories and markets reflects its aim to capture larger shares in under-penetrated service segments across India’s top cities and Tier 2 markets, as reported by economictimes.indiatimes.com.
Urban Company’s board has approved a capital raise of up to Rs 2,500 crore, pending shareholder approval, to fund investments including the new air conditioner segment and strengthen its InstaHelp business. The company ended the quarter with Rs 1,901 crore in cash and treasury investments, supporting its growth initiatives and selective acquisitions, according to economictimes.indiatimes.com.