Shares of home services marketplace Urban Company gained nearly 8% in Monday’s intraday trade, March 30, reaching the day’s high of ₹123.39 apiece, even as the broader market extended its sell-off for the third straight session.
The rally in the newly listed stock came after the company announced that its quick-service housekeeping vertical, InstaHelp, has surpassed 1 million bookings in March so far.
In its regulatory filing on March 28, the company said InstaHelp has seen strong adoption in cities such as Mumbai, Bengaluru, Delhi NCR, Hyderabad, and Pune.
Under this vertical, the company offers consumers high-quality housekeeping services for tasks such as cleaning, dishwashing, laundry, and meal preparation, all within 10–15 minutes of booking.
“InstaHelp’s trajectory is a testament to the trust our consumers place in the platform for their most immediate, everyday needs,” said Abhiraj Singh Bhal, CEO & co-founder, Urban Company Limited.
Meanwhile, Motilal Oswal, in its recent report, said that order ramp-up for InstaHelp has been rapid, which it believes requires significant upfront investment in onboarding, training, and supply density and is likely to keep near-term profitability under pressure.
AOV remains relatively low, and unit economics are still evolving. However, the brokerage views InstaHelp as an engagement lever that can increase household touchpoints and expand addressable use cases over time.
The brokerage believes the company will be a significant beneficiary of the gradual formalisation of India’s fragmented home services market as consumption shifts from unorganised offline providers to organised, technology-led platforms. It initiated coverage with a ‘Neutral’ rating and a target price of ₹125 apiece.
Earlier this month, SBI Mutual Fund acquired a 5.75% equity stake in Urban Company through block deals.
On March 17, around 94.1 crore equity shares of Urban Company, or 66% of the company’s outstanding equity, became eligible for trading as the six-month shareholder lock-in period ended.
Urban Company share price trend
Urban Company shares staged a strong recovery in March, rallying 12% so far and outperforming the broader market by a wide margin. If the stock closes this month in the green, which appears likely, it will snap a five-month losing streak, during which the stock had lost 34% of its value.
The shares had a strong market debut, listing at ₹162.3 per share, 57% higher than their issue price of ₹103, and maintained momentum in subsequent sessions, reaching ₹202 per share.
However, the stock failed to sustain that momentum. Although it has recovered lately, it is still down 39% from its peak.
Urban Company operates a technology-driven, full-stack online services marketplace, providing quality services across various home and beauty categories.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
