India, Oct. 17 -- Listed home services major Urban Company's board approved a proposal to raise up to Rs.2,500 Cr yesterday, seeking to shore up its war chest at a critical juncture.

On one hand, Urban Company's instant home services business, InstaHelp, is facing stiff competition. Fighting rivals Snabbit and Pronto for a slice of the market has turned out to be an expensive affair, with spending on InstaHelp contributing to Urban Company's widening losses.

At the same time, the company is looking to expand its product lineup under the Native brand by entering the residential air conditioner market. Meanwhile, its bread and butter consumer services continue to generate stable results.

Urban Company's financials reflect these pressures...