Urban Company on Friday said its board has given in-principle approval to explore residential air conditioners as a new category under its Native brand, as the home services platform looks to expand beyond water purifiers and smart locks.
The company said residential air conditioning fits its criteria for entering new categories, citing the size of the market and its experience servicing millions of air conditioning units each year. That experience, it said, has given it insights into gaps in existing products and customer needs.
Urban Company said it has been investing in research and development to address those gaps but would launch a product only if it offers a significant improvement over existing options.
“Our bar is clear: we will launch only with a product that is materially more compelling than what is available today,” the company said.
Water purifiers and smart locks remain the Native brand’s priority categories. Urban Company said it expects to introduce no more than one new category at a time.
The company said new categories must meet four criteria: they should require substantial servicing over their lifetime; address an unresolved consumer problem through better design and engineering; offer a large profit opportunity, particularly in the premium segment; and integrate with Urban Company’s app for purchases, installation, servicing and repairs through its service partners.
The model is intended to keep the company connected with customers well beyond the initial sale.
Board approves ₹2,500 crore fundraise
Separately, Urban Company’s board approved a proposal to raise up to ₹2,500 crore through the issuance of equity shares and securities convertible into equity shares.
The proposed fundraise could include warrants, fully convertible debentures, convertible preference shares or other securities convertible into equity, either individually or in combination.
The company may raise the funds in one or more tranches through a preferential allotment, private placement, qualified institutions placement (QIP) or another mode permitted under applicable laws.
The securities will be denominated in rupees, with the pricing, structure and other terms to be determined by the board in accordance with applicable regulations.
September-quarter loss widens
Urban Company reported a consolidated net loss of ₹182.5 crore for the second quarter of the 2026-27 financial year, compared with a loss of ₹59 crore a year earlier.
Revenue rose 41.4% year on year to ₹537.3 crore from ₹380 crore. However, the company’s EBITDA loss widened to ₹187.6 crore from ₹68.4 crore in the year-earlier quarter, as it continued to invest in its InstaHelp business.
Urban Company shares closed 1.74% higher at ₹157 on the National Stock Exchange on Friday, October 16.
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