Rapid growth in Urban Company’s quick-service vertical, InstaHelp, is drawing attention — but so is the rising cost of scaling it, according to a note by Morgan Stanley. The company recently crossed 1 million monthly bookings for InstaHelp as of March 28, translating to roughly 36,000 daily orders. The service, now live across key metros including Mumbai, Bengaluru, Delhi NCR, Hyderabad and Pune, offers on-demand household support such as cleaning, dishwashing, laundry and meal prep.
The growth trajectory has been steep. Morgan Stanley notes that InstaHelp’s daily run rate stood at about 17,500 orders in 3QFY26, which has now more than doubled. At current momentum, the brokerage estimates that 4QFY26 could see average daily orders of around 27,000, translating into nearly 2.5 million total orders for the quarter.
This sharp scale-up signals strong demand for hyperlocal, quick-service offerings — a category that Urban Company is aggressively building out.
Profitability Concerns Linger
However, the expansion is coming at a cost. InstaHelp reported an adjusted EBITDA loss of Rs 381 per order in the December quarter. With competition intensifying — including fresh and potential fundraises by rivals — Morgan Stanley expects investment levels to remain elevated.
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If per-order losses rise by up to 10% in the March quarter, total losses from the segment could widen to Rs 950–1,050 million, compared to Rs 614 million in Q3FY26.
Competition Heating Up
The brokerage highlights that competitive intensity in the quick-services space is increasing, with new capital flowing into rival platforms. This could keep customer acquisition costs and incentives high, delaying the path to profitability.
Despite near-term pressure on margins, Morgan Stanley maintains that the broader profitability trajectory may remain unchanged. Urban Company is still expected to achieve consolidated adjusted EBITDA breakeven by Q3FY28.
That said, the ramp-up in losses raises questions around when peak losses for InstaHelp will be reached, and how long elevated investments will persist.
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