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Urban Company shares gained more than 6% after Kent RO agreed to pull down advertisements that Urban Company said unfairly targeted its Native water purifiers.
The beef: at the centre of the fight were Native's two-year filter life and two-year service life claims across its M0, M1, M2, M1 Pro and M2 Pro water purifiers.
Kent's advertising reportedly questioned these claims, calling the two-year filter proposition a “marketing gimmick” and suggesting that using Native purifiers could be unsafe or risky.
But the fight isn't completely over: Kent pulling the ads doesn't mean Urban Company has “won” the entire legal battle.
There are still other disputes between the two companies playing out.
Kent has filed a patent infringement case against Urban Company. Urban Company has challenged Kent's patent and has separately filed a tortious interference case against Kent.
Zoom out: Native reported ₹95.28 crore in Q1 revenue, up about 60% from ₹59.55 crore a year earlier. Its EBITDA loss also narrowed to ₹7.75 crore from ₹10.87 crore.
That makes protecting Native's product claims and reputation increasingly important as Urban Company tries to build a consumer-products business alongside the home-services platform it is already known for.
There's another reason the stock has been getting attention. UBS recently initiated coverage on Urban Company with a Buy rating, describing the company as going through its “Blinkit moment.”
