Rival Pronto had its own fundraise last month while Urban Company went public last year.
Snabbit’s latest round valued the Bengaluru-based startup at $350 million, almost double its $180 million valuation just six months ago. It also saw existing backers Nexus Venture Partners and Lightspeed, as well as US-based FJ Labs Inc, a new investor, participate.
Unicorn Growth Fund, which joined the ranks of Snabbit’s investors, is a newly launched Rs 6,000-crore investment vehicle backed by South Korean companies Krafton, Naver Corp and Mirae Asset Venture.
Snabbit’s latest round comes six months after its $31.7 million raise in October 2025. Till date, it has raised $112 million.
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Speaking to ET, Snabbit founder and CEO Aayush Agarwal said that with this capital raise, the startup is “well-capitalised” for the next few years, allowing it to focus on long-term goals while expanding into new micro markets and cities, in addition to entering new home-services categories.
India’s home services market is expected to grow at a compound annual growth rate of 18-22% to around Rs 8,500-8,800 crore by fiscal year 2030, as per consulting firm RedSeer.
Snabbit rival Pronto, which raised $25 million in March at a $100-million valuation, is in talks to raise another $15-20 million at a $200 million valuation, ET reported last week.
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Urban Company, the biggest name in this space, went public last year. But its post-listing stock price has been under pressure as a result of rising competition in the instant help industry.
Agarwal said that Snabbit’s focus remains largely on on-demand home services, with new categories such as home cooks also getting a bit of attention. “After home services, we are piloting home cooks and will scale in Bengaluru over the next three months,” he added.
Snabbit is currently operational in Delhi NCR, Mumbai, Bengaluru, Hyderabad, and Pune. It offers services such as cleaning, dishwashing and laundry.
Fast growth, high burn
The company — much like its peers — has witnessed explosive growth in the number of orders it fulfils. In March, Snabbit reported that it had crossed 1 million orders for the month. Last December, the Bengaluru-based startup had 500,000 orders, which rose to 830,000 in February, driven by stronger demand in existing markets.
ET had reported earlier that across the top three players, the industry’s cash burn during February had increased to $11-12 million, from $7-8 million in December.
Agarwal said that subsidies offered to users are common in new categories, adding that the company was reducing burn per order significantly. “The focus is on fiscal discipline and sustainable growth. Prices are unlikely to rise significantly; efficiencies from higher utilisation will support sustainable pricing,” he said.
The CEO’s comment on pricing not witnessing an uptick is in sharp contrast with rival Urban Company, which has called for an expansion of average order values (AOVs) for the segment to become profitable. As of February, Gurugram-based Urban Company had an AOV of around Rs 160-165, while Snabbit and Pronto recorded lower average ticket sizes of Rs 120-130.
“This market is somewhat similar to food delivery. It is easy to enter initially, but hard to scale over time. The category requires heavy investment, strong supply chains, and network effects,” said Agarwal. “Our strategy is to build density, which is more micro markets doing 1,000-2,000 jobs daily, rather than being in more cities and doing 100-200.”
Labour crunch
Snabbit’s latest funding round comes at a time when the gig economy across the country is witnessing a shortage of labour, with the onset of summer and the harvest season in agrarian states, in addition to legislative assembly elections in states such as West Bengal, Tamil Nadu and Kerala.
Across major cities such as Delhi-NCR, Mumbai and Bengaluru, instant house help apps have reported unavailability of 10-minute booking slots, only assigning next-day or later slots.
“Every platform is probably going through this (labour shortage) — competition is not the problem. We are seeing some challenges in some cities,” Agarwal said. “When food delivery was getting built, there were times when it used to be difficult to have enough delivery riders. But over time, through various mechanisms, the platforms have evolved and now that’s not an issue.”
“This category is just two years old. Over time a lot of seasonal fluctuations will start getting built into the way we operate, it’s not a structural problem,” Agarwal added.
Puneet Kumar, CEO, Mirae Asset Venture Investments India, said in a statement that the depth of customer engagement, the pace of scale, and the frequency of usage stand out at this stage. “By creating value on both sides of the marketplace, we believe Snabbit is building a durable business.