Snabbit Valuation Doubles to $180M - India's House-Help Platform

India Sees Growth in On-Demand Home Services

The demand for immediate convenience in India is no longer limited to food and grocery deliveries; it is now extending to household assistance. This trend has been instrumental in securing $30 million in new funding for Snabbit, a startup specializing in on-demand home help, thereby increasing its valuation to $180 million.

This represents a significant increase from the $80 million valuation recorded just five months prior. The Series C funding round, comprised entirely of equity, was spearheaded by Bertelsmann India Investments. Existing investors, including Lightspeed, Elevation Capital, and Nexus Venture Partners, also participated in this latest investment.

Rapid Expansion and Growth

This recent capital injection brings Snabbit’s total funding to $55 million. The company has experienced substantial growth in recent months, with daily job completions rising from approximately 1,000 in May to over 10,000 currently.

By October, Snabbit had successfully completed over 300,000 total orders, as stated by founder and CEO Aayush Agarwal in a TechCrunch interview. The company was established in 2024 and provides a variety of on-demand home services.

Service Offerings and Operational Model

Snabbit caters to urban households with services like cleaning, dishwashing, laundry, and kitchen preparation. A key feature is its 100% women-led team of 5,000 service professionals.

The startup utilizes a hyperlocal network of trained workers strategically located within densely populated residential areas, guaranteeing service delivery within a 10-minute timeframe.

Current and Future Market Reach

Currently, Snabbit operates in 40 micro-markets across five major Indian cities: Mumbai, Bengaluru, Gurugram, Noida, and Pune. Plans are underway to broaden its reach within these cities and to introduce services in Hyderabad, Chennai, Delhi, and Calcutta in the near future, according to Agarwal.

The customer base has expanded significantly, from 25,000 in May to over 300,000, with projections indicating an additional 100,000 customers by next month. The majority of Snabbit’s users fall within the 30-40 age range, encompassing both single individuals and working professionals.

Addressing a Market Need

A segment of Snabbit’s clientele consists of individuals who prefer occasional assistance rather than employing full-time help. Agarwal explains that Snabbit focuses on resolving inefficiencies in the existing model, rather than simply transferring offline services online.

Financial Performance and Customer Acquisition

The startup boasts a retention rate of 30% to 35% and anticipates reaching an annual recurring revenue of $11 million this month. Furthermore, the customer acquisition cost remains “well below” ₹500 (approximately $6), as reported by Agarwal to TechCrunch.

Service pricing averages around ₹150 (approximately $2) per hour, with an average transaction value of approximately ₹240 (roughly $3).

Worker Compensation and Efficiency

Workers on the platform earn between ₹25,000 and ₹30,000 (approximately $284 to $340) monthly, dependent on their working hours. Snabbit has also successfully reduced the average travel distance between jobs for its workers, from 300 meters to 250 meters, thereby increasing their service capacity.

Competitive Landscape

Snabbit is not the sole player in India’s rapidly growing on-demand home services sector. Urban Company initially pioneered this trend, and has been followed by companies like Broomees and Pronto. Urban Company is now prioritizing instant home services to maintain its competitive edge.

However, Snabbit does not perceive this as a significant challenge. Agarwal asserts that success in a hyperlocal business hinges on winning within specific micro-markets, rather than attempting nationwide or city-wide dominance.

He further states that Snabbit currently leads in more micro-markets than Urban Company due to its strategic focus on building depth within those areas, as opposed to breadth.

Future Plans and Expansion

The newly acquired funding will be utilized to strengthen Snabbit’s existing presence and to expand into high-demand service categories, including cooking, childcare, and elder care.