Urban Company’s InstaHelp Sees Sharp Losses in Q3 as Expansion Accelerates
Urban Company’s recently launched quick-services platform, InstaHelp, reported a significant rise in losses during the December quarter, even as revenues and transaction volumes grew rapidly. The company has acknowledged that aggressive investments in this new vertical will keep the overall business under financial pressure in the near term.
In the third quarter of FY26, InstaHelp posted an adjusted EBITDA loss of Rs 61 crore, widening from Rs 44 crore in the previous quarter. At launch in Q1 FY26, losses stood at Rs 10 crore. Despite the rising losses, revenue from operations climbed to Rs 6.8 crore, reflecting strong early demand for the platform’s 15-minute, on-demand home services.
Transaction activity also surged. InstaHelp’s net transaction value (NTV) reached Rs 28 crore in Q3, up sharply from Rs 10 crore in the September quarter and just Rs 1 crore during its launch phase.
Heavy investments drive losses
Launched earlier this financial year, InstaHelp is Urban Company’s push into high-frequency, instant home services such as cleaning, repairs, and other household tasks. While the platform has expanded rapidly across major cities, profitability remains elusive due to high spending on onboarding service partners, customer incentives, operations, and geographic expansion.
Company executives indicated that the widening losses are a result of deliberate investment choices aimed at building scale and strengthening market position rather than short-term profitability.
Competitive pressure in instant services
Urban Company’s expansion comes at a time when competition in the instant home-services segment is intensifying. Several startups are also scaling up similar 15-minute service offerings in urban markets, increasing pressure on customer acquisition costs and supply-side incentives.
Impact on overall performance
Urban Company confirmed that InstaHelp is currently the main factor behind the group returning to losses at a consolidated level. The company had achieved adjusted EBITDA breakeven in FY25, but expects to remain loss-making for the next few quarters due to continued investment in InstaHelp.
However, the company remains optimistic about the long term. It expects profits from its core India consumer services business—excluding InstaHelp—as well as international operations in the UAE and Singapore, to help offset losses over time.
Urban Company has projected a return to consolidated adjusted EBITDA breakeven by Q3 FY28, with a longer-term target of achieving around Rs 1,000 crore in adjusted EBITDA by FY31.
Outlook remains cautious
For now, InstaHelp reflects a fast-scaling business with strong demand momentum but mounting financial strain. While transaction volumes continue to rise, visibility on when losses will peak remains limited as the company prioritises expansion and market leadership in the instant home-services space.
(Except for the headline, this story has not been edited by Bharatiya News staff and is published from a syndicated feed.)
