Urban Company announces plans to enter residential air conditioner segment
Urban Company currently sells water purifiers and smart locks under the Native brand. ET had first reported in October 2025 about the company exploring its foray in this space. With this Urban Company will join a list of new-age firms to sell air conditioners - a market that is currently dominated by legacy brands such as Samsung, Daikin, Godrej and Voltas.
Gurugram-based startup Urban Company has revealed its ambitious plans to enter the residential air conditioner market under its Native brand. The company, which is now known for its water purifiers and smart locks, previously expressed interest in this space back in October 2025. By expanding into air conditioners, Urban Company will join a growing number of newer companies aiming to break into the market, currently dominated by established brands like Samsung, Daikin, Godrej, and Voltas.
Urban Company maintains that water purifiers and smart locks will remain the primary focus of their Native brand, but they have set a limit of adding only one new category in the future. This new category must meet four criteria: service-oriented ownership, a clear consumer problem to solve, a large profit pool with a premium segment, and the ability to integrate with their platform.
The company believes that residential air conditioning fits this framework perfectly. They already service millions of units annually and have been investing in research and development to improve existing products.
Furthermore, Urban Company's CEO and co-founder, Ashish Goel, mentioned that their startup, Optimist, is currently developing air conditioners tailored for India's specific needs. Optimist recently secured $12 million in funding from Accel and Arkam Ventures. Another new entrant, Helium Smart Air, has raised $2 million from India Quotient.
The Indian government's recent incentives for local manufacturing have lowered the barriers to entry, encouraging startups to explore this lucrative market that has traditionally been monopolized by large corporations.
According to Urban Company's latest earnings report, their Native segment generated Rs 105 crore in operating revenue for the July-September quarter, up from Rs 75 crore in the same period last year.
Written by urgent.news from Economic Times Tech's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
