UC Hungry For Funds Again, DailyObjects’ D2C Playbook & More

UC Taps Public Markets Again for Funds

Urban Company is hungry for more cash. Despite sitting on over hundreds of crores in cash, the consumer services giant’s board will convene next week to consider a fresh fundraise. So, why is Urban Company heading back to the public markets less than a year after its IPO?

UC Seeks Fresh Capital: The startup’s board will meet on October 16 to consider raising capital through equity shares or convertible securities. Besides this, the board will also take a call on which route to take for the fundraise. But what makes this episode interesting is that UC was sitting on ₹2,019 Cr in cash and treasury investments at the end of June. Even ₹310.8 Cr of the startup’s ₹472 Cr fresh issue also remains unutilised. So, why is it chasing more money?

The Cash Guzzler: The likely pressure point is InstaHelp, UC’s instant services vertical. The company is investing heavily in the new arm to create a new category as competition continues to intensify from Snabbit and Pronto. On top of this, InstaHelp continues to weigh heavily on UC’s overall profitability, reporting an adjusted EBITDA loss of ₹132 Cr in Q1 FY27. 

Management expects InstaHelp to remain loss-making for the next few years and is unlikely to achieve breakeven before FY31

A Wider Trend: Urban Company’s post-IPO fundraise move reflects a broader pattern among listed new-age tech companies. For companies still investing in expansion, secondary issuances offer capital without interest obligations or repayment pressure. Strong share prices can also allow businesses to raise more money with less dilution. Rather than viewing an IPO as a final exit, founders are using public markets as an ongoing liquidity engine.

But, investors are also shifting focus from gross revenue to earnings per share and ROIC to ensure fresh money creates genuine accretion rather than capital hoarding. Amid this backdrop, will Urban Company’s latest fundraise find any takers? Let’s find out…

From The Editor’s Desk

DailyObjects’ Slow-Burn Playbook

• From selling smartphone cases in 2014 to selling accessories and bags, DailyObjects has come a long way in the past decade. What has helped the brand move beyond a market dominated by low-cost, unbranded accessories is its design-led differentiation.
• The startup reported a revenue of ₹200 Cr in FY26, and is targeting a ₹400 Cr top line and EBITDA profitability in FY27. This has come on the back of a richer product mix, greater offline contribution and supply-chain efficiencies.
• DailyObjects also currently operates 13 exclusive brand outlets and is present in 300 Apple premium reseller stores. It plans to open two to three stores a month, add 30–35 stores in FY27 and build a network of 150–160 stores over five years.

GreenCell Bags ₹330 Cr

• The EV startup has raised $34.6 Mn in an equity funding round led by Impact Fund Denmark to support the rollout of about 4,500 electric buses, execute its order book and streamline service delivery.
• Founded in 2019, GreenCell Mobility acquires e-buses from contract manufacturers and then deploys them for both intercity and intracity travel. It claims to operate more than 1,200 electric buses and runs over 270 charging stations. It has raised $37 Mn to date.
• The fundraise comes as the homegrown electric bus ecosystem continues to scale rapidly on the back of growing government procurement, GCC models, rising EV adoption and electric transition mandates.

UPI MDR Saga Continues

• The National Payments Corporation of India has deferred the re-introduction of merchant discount rate on select UPI transactions. Instead of the earlier October 15 rollout, the MDR will now be implemented “immediately after Diwali”.
• The NPCI said it took the decision keeping the festive season in mind. The revised implementation date will be notified separately. This follows reports that the Centre was considering delaying the MDR rollout to January 2027.
• Under the proposed framework, merchants would be charged an MDR of 0.40% on P2M UPI transactions above ₹2,000, capped at ₹300 per transaction. The move had invited significant push back from retailers, which had demanded the rollback of MDR.

DealShare CEO Exits

• Kamaldeep Singh has stepped down as the CEO of the troubled ecommerce unicorn after a three year-long stint. He has now joined electric mobility solutions provider Indofast Energy as its new CEO. DealShare has not announced Singh’s replacement.
• The exit comes amid a slew of departures at the beleaguered ecommerce unicorn. CFO Ashish Shah is also looking to exit the startup, while DealShare’s founding team – Sourjyendu Medda, Vineet Rao, Sankar Bora and Rajat Shikhar – all exited in 2024.
• Known for online grocery delivery in tier-II+ cities, DealShare is trying to douse fires on multiple fronts. The startup has been scaling down its operations as online business has dwindled to “next to zero”. It is also in talks with Truemeds for a potential fire sale.

Freshworks To Acquire Torii

• The Nasdaq-listed SaaS major has signed a definitive agreement to acquire the SaaS management platform for an undisclosed amount. Freshworks expects the deal to close by 2026-end.
•  By integrating Torii’s SaaS management capabilities into Freshservice, the listed giant aims to help its clients have a better visibility of their AI usage and spending. 
• Founded in 2010, Freshworks offers SaaS tools to help enterprises manage customer engagement, sales, IT service management, marketing and automation. It reported a net profit of $3.2 Mn in the quarter ended June 2026 against a revenue of $237.4 Mn.

Inc42 Markets

Inc42 Startup Spotlight

How Lickicious Is Betting Big On India’s Pet Parents

India’s pet parents want more than generic kibble or home-cooked meals. Yet, specialised and nutrition-led options remain limited. To solve this, Lickicious is building a pet nutrition brand around food, treats and supplements for dogs and cats.

A Desi Pet Brand: Founded in 2024, Lickicious sells dry and wet foods, treats, supplements and nutritional toppers for dogs and cats. It positions its products around palatability and balanced nutrition, while the startup also operates its own manufacturing setup.

Owning The Supply Chain: Unlike brands that rely entirely on contract manufacturing, Lickicious runs its own manufacturing setup and is developing a 60,000 sq ft manufacturing and distribution footprint. The startup claims that this will increase production capacity, improve supply reliability and strengthen quality control.

The Road Ahead: Backed by Prath Ventures, the startup now plans to scale its R&D and expand into new categories, formats, species and sales channels. The brand is targeting ₹100 Cr in annual revenue going forward and aims to become one of the biggest pet food companies in the country over the next decade.

With India’s pet food market projected to become a $2.2 Bn opportunity by 2030, can Lickicious scale into a durable pet food brand for dogs and cats?

Infographic Of The Day

From Indian textiles and traditional motifs to handcrafted accessories and heritage wear, homegrown craftsmanship is finding a growing audience beyond borders. Can Bharat’s next global D2C success story be woven from its own traditions?

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