Urban Company board approves 2,500 crore rupee fundraise proposal

Urban Company's board of directors approved a proposal on October 16, 2026, to raise up to 2,500 crore rupees through equity shares and convertible securities, according to a stock exchange filing.

The home services platform plans to raise the funds through one or more transaction routes, including a qualified institutional placement, a preferential allotment, or a private placement. The proposed fundraise remains subject to obtaining shareholder approval and necessary regulatory clearances, and the company has not yet finalized the specific terms of the issuance, Entrackr reported.

Capital raised from the transaction is intended to help the company scale its broader operations, acquire additional customers, and raise marketing expenditures. The funding is also expected to support the expansion of InstaHelp, the company's instant domestic help segment providing daily cleaning and housekeeping.

InstaHelp faces growing competition in the instant domestic help market from rival services, including Snabbit and Pronto. Urban Company also operates an online marketplace connecting consumers with workers for services such as cleaning, beauty care, and repairs, while selling consumer products under its Native brand.

Alongside the fundraising proposal, the board reviewed and approved the company's unaudited financial results for the second quarter and first half of the fiscal year ending September 2026.

For the second quarter of fiscal year 2027, consolidated operating revenue rose 41 percent year-on-year to 527 crore rupees, up from 380 crore rupees in the corresponding period of the previous fiscal year. However, net loss for the quarter widened to 182.5 crore rupees from 59.3 crore rupees a year earlier.

For the first half of fiscal year 2027, operating revenue rose 42.6 percent to 1,065.6 crore rupees from 747.3 crore rupees recorded in the first half of fiscal year 2026.

Net loss for the six-month period widened to 274.6 crore rupees, compared with a net loss of 52.4 crore rupees in the corresponding period of the previous fiscal year.