Urban Company’s losses widen in Q3 over InstaHelp investment

Urban Company Ltd posted a loss for the second consecutive quarter since its listing, driven by increased investment in the company’s quick-service vertical InstaHelp.

Urban Company Ltd reported the following revenue: ₹382.68 crore and net loss, up 32.91% compared to the same period last year. ₹21.16 crore against net profit ₹231.84 crore in the same quarter last year.

The company said in its December quarter shareholder letter: “The consolidated business achieved adjusted EBITDA breakeven in FY25. With increased investments in building InstaHelp, we expect the consolidated business to continue to be loss-making over the next several quarters. The InstaHelp opportunity is significant and immediate, and we are committed to maintaining clear market leadership.”

Loss leader InstaHelp

There are four main business segments: India consumer services, InstaHelp, Native (products) and international operations.

India consumer services (excluding InstaHelp) continued to stabilize Urban Company’s revenue base in the December quarter. ₹265 crore, up 26% year-on-year. The growth was driven by steady new user engagement and strong festive season demand in key categories such as beauty, home cleaning and repairs.

InstaHelp grew rapidly during the quarter and achieved net transaction value (NTV) ₹28 crore, a sharp rise ₹10 crore in the previous quarter. While InstaHelp’s revenue contribution remains modest relative to its core business, customer adoption, repeat use, and order growth have fueled early reflection of product-market fit. However, aggressive investments in expansion and supply increase resulted in adjusted EBITDA loss. ₹61 crore, making InstaHelp the primary drag in terms of consolidated profitability during the quarter.

The local (products) segment delivered the fastest revenue growth, with revenue rising 101% year-on-year. ₹62 crore. Growth was driven by strong demand for water purifiers and electronic door locks, but sequential momentum slowed after the previous quarter, benefiting from increased e-commerce sales.

Urban Company’s international operations in the UAE and Singapore reported revenue as follows: ₹50 crore, up 79% year-on-year, driven by expanded range of services and improved value proposition. International markets continue to be a key growth driver, benefiting from increased urban adoption and increased customer acquisition efficiency, the company said.