SBI Mutual Fund has bought a 2% stake in Urban Company for around ₹428 crore
The purchase of 3.15 crore shares is expected to take its holding close to 8%
SBI MF's increased investment comes as Urban Company regains ground in 10-minute services
State Bank of India Mutual Fund has purchased around 3.15 crore shares of Urban Company, equivalent to a 2% stake, in a transaction valued at approximately ₹428 crore.
Early investors Accel and Vy Capital were among the sellers in the transaction, as per a report by Moneycontrol.
1 August 2026
Get the latest issue of Outlook Business
The deal was executed at roughly ₹136 per share, representing a discount of about 6% to the prevailing market price, the report said.
Urban Company's shares gained nearly 3.32% to trade at ₹143.66 apiece on the National Stock Exchange (NSE) at 12 pm on August 13, despite the block deal having been struck at a lower price.
Urban Company and SBI Mutual Fund are yet to respond to Outlook Business' requests, while Accel denied commenting on the matter. Vy Capital could not be reached out till the time of writing this report.
SBI MF's Stake Growing Gruadually
SBI Mutual Fund was already a shareholder in Urban Company and has steadily increased its exposure to the home services platform.
Advertisement
The fund had been acquiring shares in the company since its pre-IPO funding rounds and continued building its position after Urban Company's market debut in September 2025.
SBI Mutual Fund held a 1.89% stake in the company at the end of December 2025. Its holding subsequently rose to around 5.9% by March 2026. Following the latest transaction, its stake is expected to increase to nearly 8% once the deal is completed, as per Moneycontrol.
SBI MF Increases Bet on InstaHelp
The latest purchase comes as Urban Company has regained leadership in the rapidly expanding 10-minute services segment through InstaHelp.
Advertisement
The quick-service business has affected the company's profitability as Urban Company continues to spend aggressively on expanding the offering.
SBI Mutual Fund's latest purchase signals continued institutional confidence in the company's growth strategy despite the near-term pressure on earnings from investments in the emerging quick-services business, the Moneycontrol report said.
Urban Company is seeking to strengthen its position against privately held rivals Snabbit and Pronto in the instant home-services market.
The company has indicated that it intends to maintain significant investment in the segment as competition intensifies.
