Urban Company 拟再融资，InstaHelp 亏损拖累业绩

Home services marketplace Urban Company is considering raising fresh capital a year after its initial public offering, as its new business line InstaHelp, which connects users with house helpers within 10 minutes, continues to be a drag on the company’s overall profitability.

In a regulatory filing, the company said its board will meet on October 16 to consider raising funds via qualified institutional placement (QIB), preferential allotment, private placement or a combination of these.

While Urban Company has not disclosed the size or type of fundraising it will do, the Economic Times reported the platform is planning to raise Rs 2,000-2,500 crore via the QIB route.

Of these, 40% is likely to be set aside for InstaHelp, while the remaining could fund inorganic expansion and help the company scale its core home services vertical and Native, its in-house brand selling water purifiers and smart locks.

Urban Company had raised $50 million through a fresh issue of shares during its IPO last September. It was sitting on cash reserves of Rs 2,019 crore as of June 2026.

Urban Company falters amid mounting losses at InstaHelp: Launched in FY26, InstaHelp alone racked up an adjusted EBITDA loss of Rs 132 crore in Q1 FY27, up 11% quarter-on-quarter from Rs 119 crore.

This weighed on Urban Company’s overall profitability, leading to a consolidated adjusted EBITDA loss of Rs 65 crore.

In fact, Urban Company lost Rs 346 per InstaHelp order in Q1 FY27.

Average order value (AOV) declined to Rs 138 from Rs 150 in the preceding quarter, as Urban Company introduced lower prices to acquire customers amid rising competition from Snabbit and Pronto.

Urban Company does not expect to make any money from InstaHelp for at least the next five years, targeting breakeven only by FY31. Instead, it is focusing on building network density and gaining market share.

The strategy appears to be working, as Instahelp crossed 3.8 million orders in the quarter ended June 2026, marking 43% growth sequentially.

AOV needs to grow twofold for InstaHelp to breakeven: On the Q1 FY27 analysts’ call, CEO Abhiraj Singh Bhal said:

“We’re of the view that the AOV has to get to around Rs 300 for the quick home services business to break even.”

For the InstaHelp business to achieve sustainable growth, a service professional would need to earn Rs 130-160 per hour on average, according to Bahl.

In theory, a service professional can work for 140-150 hours a month at full potential, assuming they are working for 6 hours a day, 25 days a month.

At that point, their net earnings clear the threshold of about Rs 20,000 to Rs 22,000, which we feel is the minimum required net earnings for this category to be attractive, to be able to get supply side from offline, where they are making around Rs 15,000 to Rs 17,000,” Bhal said.

Unlike quick commerce, there is a natural ceiling to how long a service professional can remain productive. Squeezing payouts further, Bhal warned, would lead to higher churn and increased onboarding and training costs.

Apart from the payout to professionals, InstaHelp would require an estimated Rs 50 per hour to cover customer support, marketing, team costs, and training.

Beyond the professional’s payout, Urban Company estimates it requires an additional Rs 50 per hour to cover customer support, marketing, team costs, and training. “We believe that the pricing has to at least be at Rs 200 per hour.”

However, this transition will only happen over time. “How soon will it get there? Will it take a couple of years? Will it take 5 years? We don’t know. We’re taking the worst case here, which is 5 years.”

Competitive landscape: The proposed fundraising by Urban Company comes at a time when it is facing stiff competition from Pronto and Snabbit, both of which have scooped up millions of dollars from investors in recent months and are competing against InstaHelp for the same 3.5-4 million orders, according to Bahl.

In May this year, home services startup Pronto raised $20 million in its Series B round, led by venture capitalist Lachy Groom, which valued the company at $200 million.

Pronto made headlines recently over its in-home AI recording pilot, which triggered a debate around surveillance, consent and use of customers’ home data for training AI systems.

In April 2026, its rival Snabbit also raised $56 million in its Series D round from Susquehanna VC, Mirae Asset Venture Investments, and Bertelsmann at a valuation of $360 million.

All three companies provide customers with house helpers within 10 minutes to handle household tasks such as sweeping & mopping, washing utensils and laundry.

While Pronto and Snabbit are experimenting with new offerings such as kitchen prep, car washing and, eventually, babysitting, Urban Company is currently focused on the core segment.

In Q4 FY26 earnings call, Bahl hinted that the company had no immediate plans to expand InstaHelp into new categories.

“We know that some of our competitors are experimenting with some of these adjacencies, but we are focused on core. We believe the player that will win the core segment in the core micro-markets.”

That said, the fresh capital could help Urban Company reduce delivery times across its core services, including salon and spa, appliance repairs, electricians, etc., while also densifying InstaHelp’s network.

Urban Company 拟再融资，InstaHelp 亏损拖累业绩

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