Urban Company , a leading home services platform, has taken a significant step to enhance employee ownership and engagement. The company's Nomination and Remuneration Committee has approved the allotment of 1,02,07,638 equity shares to eligible employees under its stock option schemes.

Key Details of the Allotment

Breakdown of Allotment

Impact on Share Capital

The allotment has resulted in an increase in Urban Company's paid-up equity share capital:

Additional Information

• The newly allotted shares will rank pari-passu with the existing equity shares of the company.
• The allotment was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

This move by Urban Company demonstrates its commitment to aligning employee interests with the company's long-term growth objectives. By expanding employee stock ownership, the company aims to foster a sense of ownership and motivation among its workforce, potentially leading to enhanced productivity and loyalty.

The substantial number of shares allotted suggests a significant portion of Urban Company's employees may benefit from this initiative. As the company continues to grow in the competitive home services market, such employee-centric actions could play a crucial role in attracting and retaining top talent.

Urban Company , the home services platform, reported a consolidated net loss of ₹59.3 crore for the July-September quarter (Q2), significantly wider than the ₹1.8 crore loss in the same period last year. The company attributed the increased loss primarily to upfront investments in scaling its newly launched vertical, Insta Help, which provides professionals for daily cleaning services in 15 minutes.

Financial Highlights

• Consolidated revenue from operations rose 37% year-on-year to ₹380.00 crore
• Net Transaction Value (NTV) grew 34% to over ₹1,000.00 crore
• Adjusted EBITDA loss widened to ₹35.00 crore, compared to a loss of ₹30.00 crore in Q2 of the previous fiscal year
• Excluding Insta Help, the company recorded a positive adjusted EBITDA of ₹10.00 crore

Segment Performance

Urban Company's largest segment, India Consumer Services, which contributes nearly 70% of total revenue, posted a positive adjusted EBITDA of ₹18.00 crore (excluding Insta Help). However, margins contracted by 70 basis points year-on-year to 2.4% due to investments in training, audits, user acquisition, faster fulfillment, customer support, and team expansion.

The international business showed strong growth, with revenue rising 66% year-on-year to ₹41.00 crore. The company achieved adjusted EBITDA breakeven in the UAE and Singapore markets on a combined basis.

Insta Help: A New Focus

Launched in February, Insta Help is now operational across select micro-markets in Mumbai, Delhi-NCR, Hyderabad, Bengaluru, Kolkata, and Pune. In October, the vertical recorded 468,000 orders with an Average Order Value (AOV) of ₹184.00. The company noted that it took nearly 4.5 years for its India Consumer Services business to reach a similar scale of 460,000 orders.

Urban Company's management stated, "In the first phase of our scale-up, our focus is to cover all high-density residential clusters across India's top seven metropolitan areas." The company is investing in network densification, service professional onboarding and training, early earnings support for professionals, and selective discounting to boost trials.

While Insta Help shows promise, it currently represents a significant cost center for Urban Company. The adjusted EBITDA loss of ₹44.00 crore from this vertical pushed the overall adjusted EBITDA loss to ₹35.00 crore in Q2.

As Urban Company continues to expand and invest in new verticals like Insta Help, investors will be watching closely to see how quickly these initiatives can turn profitable and contribute to the company's overall growth strategy.