India’s desire for immediate convenience, previously focused on meal and grocery deliveries, now includes domestic help. This trend has enabled Snabbit, an on-demand home services startup, to obtain $30 million in fresh capital and increase its valuation to $180 million, a rise from $80 million five months prior.
The Series C round, entirely equity-based and Snabbit’s third funding event in nine months, was spearheaded by Bertelsmann India Investments, with participation from current investors Lightspeed, Elevation Capital, and Nexus Venture Partners. This latest round boosts the startup’s total funding to $55 million.
Snabbit’s new financing comes after a significant surge in activity; the Bengaluru-based startup has grown from roughly 1,000 daily jobs in May to over 10,000 daily bookings. The company surpassed 300,000 total orders in October, according to founder and CEO Aayush Agarwal in a TechCrunch interview.
Established in 2024, Snabbit provides various on-demand home solutions to urban residents, including cleaning, dishwashing, laundry, and kitchen assistance, facilitated by an all-women workforce of 5,000 experts. The startup functions through a localized network of skilled professionals positioned around densely populated residential areas, promising service within 10 minutes.
Currently, Snabbit operates in 40 micro-markets across five key cities: Mumbai, Bengaluru, Gurugram, Noida, and Pune. Agarwal stated to TechCrunch that the company intends to broaden its reach in these cities and soon expand to Hyderabad, Chennai, Delhi, and Calcutta.
Snabbit has catered to more than 300,000 clients, an increase from 25,000 in May, and anticipates adding another 100,000 in the near future. The majority of its users are between 30 and 40 years old, including both single individuals and working professionals.
Some of Snabbit’s users are those seeking occasional home assistance rather than full-time help. Agarwal commented, “We are essentially addressing inefficiencies in the existing model, rather than simply transferring an offline service online.”
The startup reports a retention rate between 30% and 35% and anticipates reaching an annualized recurring revenue of $11 million within the current month. Furthermore, Agarwal revealed to TechCrunch that their customer acquisition cost is “significantly below” ₹500 (about $6).
Snabbit’s services are priced at approximately ₹150 (around $2) per hour, with the typical transaction averaging about ₹240 (roughly $3).
Workers on the platform earn between ₹25,000 and ₹30,000 (roughly $284 to $340) monthly, contingent on their working hours. The startup has also decreased the average travel distance for its workers between assignments from 300 meters to 250 meters, allowing them more time to serve their clients.
Snabbit is one of many vying to deliver prompt, on-demand home services in India. Urban Company pioneered this approach, followed by startups like Broomees and Pronto. To stay competitive, Urban Company now intends to intensify its focus on instant home services. However, Snabbit indicates that it doesn’t view this as a hurdle.
Agarwal stated, “In a hyper-local business model, success is achieved not across India or even entire cities, but within specific micro-markets. Presently, Snabbit is the leader in more micro-markets where both we and Urban Company operate because we have adopted a strategy focused on developing depth rather than breadth.”
The additional funding will assist Snabbit in reinforcing its current market position and growing into high-demand areas like cooking, childcare, and care for the elderly.
