Urban Company has announced that it expects adjusted EBITDA losses to continue in the short term as the company maintains its strategic investment focus on InstaHelp. The company's guidance reflects its commitment to expanding platform capabilities despite near-term profitability impacts.

Investment Strategy Impact

The company's ongoing investments in InstaHelp are driving the expected continuation of adjusted EBITDA losses in the immediate term. Urban Company's strategic focus on this platform expansion represents a significant resource allocation that is currently impacting profitability metrics.

Platform Development Focus

InstaHelp remains a key investment priority for Urban Company, with the company dedicating substantial resources to enhance the platform's capabilities and market reach. The continued investment in this initiative demonstrates the company's long-term strategic vision for service delivery enhancement.

Financial Outlook

The company's expectation of continued adjusted EBITDA losses reflects the current investment phase in InstaHelp development. Urban Company's guidance indicates that these short-term profitability impacts are part of a broader strategic investment approach focused on platform growth and market expansion.

Urban company Limited has filed its quarterly monitoring agency report for the quarter ended December 31, 2025, under Regulation 32 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The report, prepared by CARE Ratings Limited as the monitoring agency, provides a comprehensive overview of how the company has utilized proceeds from its ₹472.00 crore Initial Public Offering during Q3FY26.

IPO Proceeds Utilization Overview

The monitoring agency report reveals that Urban Company utilized ₹56.47 crores during the quarter across its stated objectives, with ₹415.53 crores remaining unutilized and strategically deployed in various financial instruments. The company's IPO, which was conducted from September 10, 2025, to September 12, 2025, raised funds for specific strategic initiatives outlined in the offer document.

Technology Development and Infrastructure Investments

The largest allocation during the quarter was ₹18.04 crores for new technology development and cloud infrastructure. This expenditure comprised ₹12.46 crores in salary payments to the engineering team for new technology development and ₹5.58 crores for Amazon Web Services (AWS) cloud infrastructure. The company has allocated a total of ₹190.00 crores for this objective across FY26, FY27, and FY28.

Marketing and Operational Expenditures

Urban Company invested ₹6.56 crores in marketing activities during the quarter, making payments to major digital platforms including Google India Private Limited, Facebook India Online Services Private Limited, and M&C Saatchi Mobile India LLP for advertising services. The total marketing budget allocation stands at ₹90.00 crores.

For office lease payments, the company spent ₹7.31 crores out of the total allocated ₹75.00 crores. Additionally, ₹24.55 crores were utilized for issue expenses, including listing fees and audit fees, nearly completing this category with only ₹2.36 crores remaining.

Investment of Unutilized Proceeds

The company has strategically invested the remaining ₹415.53 crores across multiple fixed deposits with leading banks. The investments are distributed among HDFC Bank Limited (₹145.00 crores), ICICI Bank Limited (₹60.00 crores), and Axis Bank Limited (₹200.00 crores), with the remainder in current accounts and monitoring accounts.

Compliance and Monitoring

CARE Ratings Limited, serving as the monitoring agency, confirmed that all utilizations align with the objects disclosed in the offer document. The report indicates no material deviations from the stated purposes, with all expenditures properly documented through chartered accountant certificates from JC Bhalla & Co., management certificates, and bank statements.

The monitoring agency noted that board approval for utilization under General Corporate Purpose during Q3FY26 had not been received at the time of report preparation, though they relied on management confirmation and chartered accountant certification for the minimal ₹0.01 crore expenditure on bank charges.

Implementation Timeline

The company is implementing its stated objectives according to the planned timeline, with expenditures spread across FY26, FY27, and FY28. For technology development, the company plans to spend ₹42.00 crores in FY26, ₹74.00 crores each in FY27 and FY28. Similar phased approaches are planned for office lease payments and marketing activities, ensuring systematic deployment of IPO proceeds over the specified period.