SBI Mutual Fund Buys ₹632 Crore Stake in Urban Company

SBI Mutual Fund has significantly increased its stake in Urban Company through a series of bulk and block deals worth approximately ₹632 crore, signalling strong institutional confidence in the home services platform.

According to exchange data, the fund acquired around 5.7 crore shares, purchasing:

• 3.51 crore shares on NSE at ₹109.85 per share
• 2.25 crore shares on BSE at ₹109.83 per share

This move increased SBI Mutual Fund’s stake in Urban Company from 1.89% in December 2025 to nearly 5.9%.

Existing Investors Trim Stakes

On the other side of the transaction, several existing investors reduced their holdings:

• Wellington Hadley Harbor AIV Master Investors sold shares worth ~₹349 crore
• DF International Partners sold ~₹194 crore
• ABG Capital sold ~₹191 crore

Together, these investors offloaded around 4.6% stake in the company.

Strong Revenue Growth, Profitability Under Pressure

For the December quarter (Q3 FY26), Urban Company reported:

• Revenue: ₹382.68 crore (up 33% year-on-year)
• Net Loss: ~₹21 crore
• Adjusted EBITDA Loss: ~₹17 crore

The losses were primarily driven by continued investments in new growth initiatives, especially the company’s quick-service vertical InstaHelp.

InstaHelp Drives Growth but Impacts Margins

Urban Company’s InstaHelp, an instant home services offering, has scaled rapidly, crossing 50,000 daily bookings within a year of its pilot launch in Mumbai.

However, this rapid expansion has impacted margins:

• InstaHelp EBITDA Loss: ~₹60.9 crore in Q3 FY26

Despite this, the company’s core business remains profitable:

• Core EBITDA (excluding InstaHelp): ₹44 crore
• Margins continue to improve steadily

The company’s India operations remain the primary growth driver, while its Native brand has shown strong traction, with revenue more than doubling year-on-year and losses narrowing.

Long-Term Outlook and Profitability Targets

Urban Company expects profitability to improve as it continues to scale operations and optimise costs.

The company is targeting:

• ₹1,000 crore adjusted EBITDA by FY31

Its long-term strategy includes:

• Strengthening core service margins
• Scaling high-frequency service categories
• Improving operational efficiency

Institutional Confidence in Consumer Services Platforms

SBI Mutual Fund’s increased stake highlights growing institutional interest in consumer services and platform-based businesses with strong demand and scalable unit economics.

While short-term profitability remains under pressure due to expansion investments, Urban Company’s:

• Strong revenue growth
• Improving core margins
• High-frequency demand

continue to attract long-term investors.

Why This Matters

Urban Company represents a key player in India’s formalisation of home services, transforming a largely unorganised sector into a structured, technology-driven marketplace.

Institutional investments like this signal confidence not just in the company, but in the broader consumer services ecosystem, where convenience, reliability, and digital adoption continue to drive growth.