Urban Company Eyes AC Market, Plans Major Fundraise

Urban Company's board has approved exploring residential air conditioners as a new category under its Native brand, signaling a significant expansion beyond its current offerings.

The company views ACs as a strategic fit, citing market size and its existing experience servicing millions of units annually, which provides insights into product gaps and customer needs.

Urban Company is committed to launching products that offer substantial improvements over existing options, adhering to strict criteria for new categories.

These criteria include significant lifetime servicing requirements, addressing unresolved consumer problems through superior design, offering large profit opportunities, and seamless integration with the Urban Company app.

Separately, the company's board greenlit a proposal to raise up to ₹2,500 crore through the issuance of equity shares and convertible securities to support its expansion.

For the second quarter of the 2026-27 financial year, Urban Company reported a consolidated net loss of ₹182.5 crore, a widening from ₹59 crore in the prior year.

Revenue for the period increased by 41.4% year-on-year, reaching ₹537.3 crore, while EBITDA loss also widened due to continued investments in its InstaHelp business.