Home services platform Urban Company's board has approved a proposal to raise Rs 2,500 crore through a qualified institutional placement (QIP), according to a stock exchange filing.

In a letter to shareholders, the Gurugram-based company said it had Rs 1,901 crore in cash as of September 30, while its businesses excluding the InstaHelp segment generated Rs 119 crore in adjusted Ebitda over the past nine months.

“The purpose of the raise is flexibility. The business today is materially larger than at the time of listing, and growth has stepped up meaningfully. We now operate three businesses at scale, with proven economics across India Core, International and Native,” the company said.

Urban Company went public in September 2025, raising Rs 472 crore through its initial public offering (IPO).

“The raise gives us the ability to invest with conviction across each of these areas: to sustain higher growth in the core business, to fund the next phase of growth in Native, to cement leadership in InstaHelp through its most competitive phase, and to pursue inorganic opportunities selectively,” it added.

Urban Company reported a 41% year-on-year increase in operating revenue to Rs 537 crore for the July-September quarter. Its net loss, however, tripled to Rs 175 crore as continued cash burn in InstaHelp weighed on its bottom line.

InstaHelp under pressure

With competition in the instant househelp segment remaining intense, Urban Company’s post-discount average order value (AOV) fell to Rs 118 in the September quarter from Rs 134 in the June quarter.

“Competitive intensity remained high, and we leaned further into new user acquisition, where introductory pricing is lower,” the company said in the letter.

“We regard this as the cost of building habit while the category is being formed, not as the steady-state price of the service. In the medium term, we believe net order value should move up for us, albeit slowly and subject to competitive intensity. As it does, loss per order should improve further,” it added.

Urban Company competes with Nexus Venture Partners-backed Snabbit and General Catalyst-backed Pronto in the instant househelp segment.