JM Fin starts 'Buy' on Urban Company; InstaHelp seen as Blinkit opportunity

Jm Financial said that if InstaHelp economics become viable, this could turn out to be the 'Blinkit' opportunity for Urban Company, noted JM Financial

JM Financial Institutional Securities has initiated coverage on Urban Company (UC) with a ‘Buy’ rating and a target price of ₹125 per share, valuing the business on a sum of the parts (SoTP) basis to reflect the differing maturity and profitability profiles across segments.  

Urban Company shares rose 2.3 per cent in trade on BSE, logging an intra-day high at ₹110 per share. At 11:03 AM, Urban Company shares were trading 2.36 per cent higher at ₹110.45 per share. In comparison, the BSE Sensex was down 0.62 per cent at 81,735.73.

 

The brokerage initiated coverage highlighting Urban Company’s dominant position in India’s online home services market, where it commands over 60 per cent market share in a segment with less than 1 per cent online penetration. The broader home services industry is estimated at nearly ₹5 trillion, and is expected to grow at a 10–11 per cent compound annual growth rate (CAGR) between FY25 and FY30, with online adoption likely to accelerate sharply. 

 

Strong moat in core business

Urban Company operates across categories such as cleaning, pest control, appliance repair, beauty services, and handyman solutions. JM Financial noted that scaling such a platform requires deep operational execution across micro-markets and categories, creating high entry barriers. As the only multi-category player operating at scale, UC benefits from strong network effects that are difficult to replicate.

 

The company’s ecosystem is described as “win-win,” with service professionals earning among the highest hourly and monthly incomes in India’s gig economy, while customers benefit from standardised, reliable, and transparent services.

International expansion and new bets

Beyond India, Urban Company is seeing rapid adoption in international markets, supported by strong “do-it-for-me” consumer behavior. The brokerage believes the international segment has already demonstrated product-market fit and could deliver strong growth with improved profitability.

 

Urban Company has also launched two new verticals—‘Native’, its in-house products brand, and ‘InstaHelp’, which focuses on daily cleaning and domestic help services. While InstaHelp operates in a low-ticket, high-frequency category with a serviceable addressable market of over ₹1.3 trillion, sustainable unit economics are yet to be proven. However, if unit economics become viable, this could turn out to be the ‘Blinkit’ opportunity for Urban Company, noted JM Financial. 

Key risks

The brokerage has flagged risks, including potential disintermediation in the services segment, high competition in product categories under Native, sustained losses in InstaHelp, and regulatory or societal challenges impacting the gig economy.

 

Disclaimer: Views and recommendations are those of the brokerage/analyst and are not endorsements. Readers should exercise discretion.