- Urban Company's Native has installed over 5 lakh water purifiers since launch
- Native's Q2 revenue grew about 40%, with adjusted EBITDA loss at Rs 9 crore
- Board approved exploring air conditioner market entry, no final launch decision
Urban Company's consumer products business, Native, is looking to sustain its growth momentum as it expands its presence in the water purifier and smart lock categories, while evaluating a potential entry into the air conditioner market.
Native has crossed the milestone of 5 lakh water purifier installations, three years after its launch. The business also reported revenue growth of around 40% in the second quarter.
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Speaking to NDTV Profit exclusively, Vikas Khaitan, Co-founder and COO of Urban Company, said the company remains confident about Native's growth trajectory, driven by new product launches, improving customer experience and deeper penetration in existing categories.
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The company had launched the Native M3 Pro water purifier, extending its filter life from two years to three years. Khaitan said the product has received a positive response from consumers.
Native's adjusted EBITDA loss stood at Rs 9 crore in Q2 FY27. However, the company has seen an improvement of around 200 basis points in margins compared with the corresponding period last year.
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Khaitan attributed the improvement to better operating metrics, scale, stronger capabilities and operating leverage.
He expects margins to continue improving, with the business inching towards profitability over the next few quarters.
Urban Company has received board approval to explore an entry into the air conditioner category but has not yet taken a final call on the launch.
Khaitan said the company sees an opportunity to address consumer dissatisfaction around product quality, performance and recurring repair costs.
Having serviced and repaired millions of air conditioners over the years, Urban Company believes its understanding of consumer pain points and existing service network could help it develop a differentiated proposition.
However, any potential launch would follow a measured and cautious approach.
The company plans to initially focus on cities where it has a strong presence and target premium consumers who place greater value on product quality and service experience.
Khaitan clarified that the proposed AC foray, if it materialises, would initially be restricted to India, with no immediate plans for international markets.
Apart from air conditioners, Urban Company is not currently evaluating any other new product categories.
Khaitan said the company sees significant headroom for growth in its existing water purifier and smart lock businesses, given their relatively small presence compared with the overall market opportunity.
The immediate priority will be to increase penetration and strengthen its position in these categories.
Commenting on rising competition across its businesses, Khaitan said competitive intensity has increased across multiple segments but is not new to the company.
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He said Urban Company's strategy will remain centred on customer experience and operational execution.
The company is focused on making services better, faster and cheaper, improving Native product performance and strengthening after-sales service, while offering affordable and instant household help through InstaHelp.
Urban Company remains open to acquisition opportunities in both domestic and international markets.
Khaitan said the company is evaluating acquisitions that can meaningfully advance its broader business mission.
The company recently announced plans to raise funds, with acquisitions being one of the potential uses of the proceeds.
He added that the next phase of growth will focus on strengthening its existing businesses while evaluating opportunities that can create meaningful long-term value.
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