Urban Company Board Clears ₹2,500 Crore Fundraise as InstaHelp Battle Heats Up

Urban Company's board has approved a plan to raise up to ₹2,500 crore, giving the home-services company more firepower as competition heats up in instant home cleaning. The approval, announced on 16 October 2026, came alongside its results for the September quarter.

The money can be raised in one or more tranches through equity shares, warrants, convertible debentures or convertible preference shares, via a qualified institutional placement (QIP), a preferential allotment or a private placement. The plan needs shareholder approval, and the company has not yet finalised the terms.

InstaHelp is the battleground

Urban Company has said the funds will give it flexibility to invest across its businesses, cement its lead in InstaHelp, its quick home-cleaning service, and selectively pursue acquisitions. InstaHelp competes with startups Snabbit and Pronto, which are also racing to deliver household help within minutes.

The September quarter

Revenue rose 41% from a year earlier to ₹527 crore in the second quarter of FY27, but the net loss widened to ₹182.5 crore from ₹59.3 crore. The company reported an adjusted EBITDA loss of ₹144 crore, which included ₹174 crore of investment in InstaHelp.

Excluding InstaHelp, adjusted EBITDA was ₹30 crore, up 213% year on year. In other words, the core marketplace is making money at the operating level while the company spends heavily to win instant services. Urban Company had ₹1,901 crore in cash on 30 September.