Urban Company reported a net loss of ₹182 crore for Q2 FY27, as it prioritized aggressive expansion into daily services over immediate profitability. Despite the losses, operational revenue grew 41% to ₹537 crore, supported by a jump in order volumes. The company now plans to raise ₹2,500 crore through a fundraise to support future operations and potential new investments.
Urban Company reported a consolidated net loss of ₹182.48 crore for the second quarter of the fiscal year 2027. This is a sharp increase from the loss of ₹59.33 crore recorded in the same quarter last year. The company explained that the deepening losses are a direct result of heavy spending on its InstaHelp segment, which focuses on daily household maintenance and cleaning services.
While the bottom line remains under pressure, the business is seeing strong demand from customers. The company’s revenue from operations rose by 41.4% to reach ₹537.29 crore. The total value of all transactions on the platform (Net Transaction Value) climbed 39% to ₹1,432 crore, and the number of orders delivered reached 15.1 million, a 103% increase compared to the previous year. The platform now serves roughly 10 million annual transacting customers.
To fund its future growth and provide flexibility for new projects, the company’s board has approved a proposal to raise ₹2,500 crore. This will be done through a qualified institutional placement, which involves issuing equity shares or similar securities to large, qualified investors. The company closed the quarter with ₹1,901 crore in cash and treasury assets, stating that the current fundraising is a planned step to ensure financial strength rather than an immediate survival necessity.
The InstaHelp segment has become the primary area of focus for spending. This division reported a loss of ₹173.12 crore for the quarter, rising from ₹42.91 crore in the same period last year. While revenue from this segment grew significantly to ₹20.54 crore from ₹1.43 crore, the net order value per unit dropped to ₹114 from ₹138. This decline is mainly due to competitive pricing strategies where the company has reduced prices to attract more users and build a larger market share in the cleaning services category.
Looking ahead, the leadership has set a target to achieve operational profitability, specifically an adjusted EBITDA break-even, by the third quarter of fiscal year 2028. An adjusted EBITDA break-even means the company aims to reach a stage where its core business operations generate enough income to cover expenses before considering interest, taxes, and depreciation costs. The management expects a total adjusted EBITDA contribution of ₹1,000 crore by the fiscal year 2031, provided that the current investment phase in the cleaning services category successfully stabilizes and unit economics improve.