Urban Company, the Gurgaon-based home services platform that went public in September 2025, is reportedly in early-stage discussions with component suppliers to locally assemble and sell room air conditioners (ACs) under its in-house Native brand. According to an Economic Times report dated October 5, 2025, this potential entry into the room AC market would mark Native’s third product category after water purifiers (launched in 2023) and smart locks, aiming to create an integrated ecosystem where hardware sales drive recurring service revenue like installation and maintenance. For investors, consumer tech analysts, and home services enthusiasts searching Urban Company Native AC brand, Native expansion room AC, or Urban Company hardware services integration 2025, Native’s FY25 revenue of ₹116 crore—up fourfold from FY24—positions it as a growth lever for the company, which reported 38% operating revenue rise to ₹1,144 crore and swung to a ₹240 crore net profit in FY25. The timing aligns with recent GST cuts on ACs (18% slab), making the category more affordable and spurring demand in India’s ₹25,000 crore room AC market growing at 15% CAGR. While no formal launch date is confirmed, sources indicate prototype testing could begin in Q4 FY26, with sales targeted for summer 2026.
Urban Company’s strategy reflects a shift from pure services to a “consumer-first brand,” leveraging its 10 million+ user base for cross-selling.
Native’s Expansion: From Purifiers to ACs
Launched in late 2023, Native has quickly scaled to ₹116 crore revenue in FY25, a 300% jump from FY24, driven by smart RO water purifiers (M1 and M2 models) and electronic smart locks. The AC foray would extend this hardware line, integrating with Urban Company’s app for seamless servicing—bookings for installation, repairs, and AMC directly via the platform.
- Product Focus: Locally assembled room ACs with IoT features for remote monitoring and maintenance alerts, emphasizing energy efficiency and smart home compatibility.
- Service Synergy: AC sales bundled with Urban Company’s AC repair/spa services, creating recurring revenue (e.g., annual filters at ₹2,000-3,000).
- Market Opportunity: India’s room AC market, valued at ₹25,000 crore, saw 13-15 million units sold in FY25; GST cuts (18% slab) reduced prices by 10%, boosting demand.
Urban Company CEO Abhiraj Singh Bhal has previously framed Native as a “devices layer” for the ecosystem, solving end-to-end pain points. Sources say the AC push is in “early discussions,” with component makers like Blue Star and Voltas in talks for partnerships.
| Native Product | Launch Year | FY25 Revenue (Est.) | Key Features |
|---|---|---|---|
| Smart RO Purifiers (M1/M2) | 2023 | ₹80 Cr | 2-Year No-Service, IoT Monitoring |
| Smart Locks | 2024 | ₹36 Cr | App-Controlled Security |
| Room ACs (Proposed) | 2026 | N/A | IoT, Energy-Efficient, Local Assembly |
Strategic Rationale: GST Cuts and Hardware-Service Synergy
The timing leverages September 2025 GST reforms, which rationalized slabs to 0%, 5%, 18%, and 40%, cutting AC taxes to 18% from 28% and passing ₹300 crore in benefits to consumers. This aligns with Urban Company’s omnichannel model—200+ stores and app—for hardware distribution.
- Revenue Model: 40% from hardware sales, 60% from services (repairs, AMC).
- Competitive Edge: Bundled warranties and on-demand servicing differentiate from standalone brands like Voltas.
- Expansion Plans: 500 stores by FY27; ACs could add ₹200-300 crore revenue.
Urban Company’s FY25 profitability (₹240 Cr PAT on ₹1,144 Cr revenue) provides capex for this venture.
Market Context: AC Sector’s 15% CAGR and Urban’s Ambitions
India’s room AC market, dominated by Daikin (25% share), LG (20%), and Voltas (15%), grows at 15% CAGR, with premium IoT models rising 25%. Urban Company’s entry via Native could capture 1-2% share by 2028, leveraging its 10 million users.
- Challenges: High competition; supply chain for components.
- Opportunities: GST savings boost affordability; smart home trend.
Conclusion: Native’s Cool Expansion
Urban Company’s Native brand room AC foray is a strategic hardware push, timed with GST cuts to integrate sales and services. With FY25’s ₹116 Cr revenue as fuel, it’s poised for growth. For consumer tech, it’s a fresh breeze—will Native chill the market? The units cool. ET
