Decoding Urban Company’s ₹2,500 Cr Fundraise Proposal
Listed home services major Urban Company’s board approved a proposal to raise up to ₹2,500 Cr yesterday, seeking to shore…
Urban Company, a leading home services provider, approved a proposal to raise up to ₹2,500 crore in a fundraise yesterday. The company aims to bolster its balance sheet and gain greater flexibility to invest across its businesses. CEO Abhiraj Singh Bhal stated that Urban Company aims to become the trusted home platform for Indian consumers.
The company plans to expand its product lineup under the Native brand by entering the residential air conditioner market. While its consumer services continue to generate stable results, the company is facing intense competition in the quick home services segment. Urban Company's financials reveal that the company reported an adjusted EBITDA loss of ₹144 crore in Q2 FY27, driven by a ₹174 crore investment in InstaHelp.
Excluding InstaHelp, the company reported an adjusted EBITDA profit of ₹30 crore. The company's proposed ₹2,500 crore fundraise is seen as a means to provide greater flexibility to invest across its businesses and consolidate its position in existing markets or enter new categories.
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