The Indian home services sector is witnessing a significant surge in venture capital interest, fueled by a massive market opportunity currently valued at an estimated $60 billion for the fiscal year 2024-25, as per a RedSeer report. However, beneath this wave of investor enthusiasm, a critical challenge persists for new-age startups: a glaring lack of differentiation in a fiercely competitive and cost-intensive landscape.
The Funding Frenzy and the Sameness Problem
Companies like Snabbit and Pronto are actively raising capital to fuel their expansion. Snabbit, which began operations in Mumbai in 2024 and has since entered Bengaluru and the National Capital Region (NCR), is seeking to raise between $100 and $120 million, targeting a valuation in the range of $500-550 million. Pronto, launched in Gurugram in May 2025, is also in discussions for a fresh funding round after an initial $2 million raise. Despite this influx of capital, industry observers note that most players offer remarkably similar services, with investors primarily betting on the sheer size and disruptive potential of the market rather than on unique business models.
Vikram Gupta, Founder and Managing Partner at IvyCap Ventures, highlighted the behavioral shift driving this opportunity. "There’s an entire generation looking for on-demand home services and willing to pay a premium for convenience," he said, referencing his firm's early investment in Taskbob back in 2016. The online segment of this vast market, where these startups operate, remains a small fraction at just under $500 million, but it is projected to grow at a steady 18-22% CAGR through 2029-30.
Scaling the Business: Microhubs and Mounting Costs
The predominant strategy for growth involves targeting "microhubs"—high-density residential areas with an existing ecosystem of domestic help. Startups position themselves as reliable backups when regular part-time help is unavailable. Snabbit's founder, Aayush Agarwal, explained their expansion logic is tied to operational feasibility, ensuring training centres and onboarding setups can service new areas effectively without compromising quality.
Pronto has scaled rapidly since its May launch, adding Noida, Mumbai, Bengaluru, and parts of Hyderabad, Pune, and Delhi within months. Founder Anjali Sardana identified Bengaluru as having the highest growth potential among their current cities. The listed giant, Urban Company, which went public in September 2025, has also thrown its hat into the ring with its "Insta Help" service, launched in Mumbai in February and expanded to other cities. However, this vertical contributed significantly to the company's adjusted EBITDA loss of ₹44 crore in the September quarter, underscoring the high costs of scaling.
The Road Ahead: Quality, Stickiness, and Execution
As the market crowds, the key question remains: what truly distinguishes one service from another? For Snabbit, the differentiator is speed, which improves expert earnings and unit economics. Pronto bets on consistent quality as its ticket to gaining market share. Yet, experts like Amarjeet Makhija of PwC India point to deeper hurdles: the rising cost of hiring and training talent due to new labour codes, and the ultimate challenge of creating brand stickiness through superior customer experience and upskilled workers.
Both Snabbit and Pronto plan to expand their service portfolios into areas like home cooks and elderly care, but the immediate focus for some is consolidation. Agarwal admitted that after rapid scaling, Snabbit's priority is to "pause and strengthen the core" across technology and operations. The consensus among investors is that execution will be the ultimate decider. "This won’t be a winner-takes-all market," predicts Vikram Gupta. "Some players will dominate specific geographies. First-mover advantage isn't about the overall brand, but about who enters a geography first." The race to organize India's vast home services market is on, but the path to profitability remains a complex puzzle of unit economics, differentiation, and flawless execution.
