India's on-demand home services startup, Snabbit, has seen its valuation double to $180 million in just five months, fueled by its rapid growth in the house-help sector. This surge in valuation comes after a Series C funding round of $30 million, marking a significant jump from its previous valuation of $80 million.
Snabbit's success can be attributed to the increasing demand for instant convenience in India, which is now extending beyond food and grocery delivery to include household services. The company's daily bookings have surged from approximately 1,000 jobs in May to over 10,000 in October, recently surpassing a total of 300,000 orders.
Snabbit operates on a model of providing hyperlocal, on-demand domestic services, including cleaning, dishwashing, laundry, and kitchen preparation. These services are delivered by a workforce of 5,000 trained experts, who are all women, with the company promising service within 10 minutes of booking.
The latest funding round brings Snabbit's total funding to $55 million, representing the third fundraising effort in nine months. This financial backing underscores the viability of technology-driven, on-demand domestic services in India's urban centers.
Founded by Aayush Agarwal, Snabbit aims to bridge the gap between the demand for and access to reliable domestic help. Agarwal, who previously worked at Zepto, recognized the challenges faced by urban dwellers in finding trustworthy and efficient help for household chores. He discovered that while there was no shortage of domestic workers, connecting them with households was a significant issue.
Snabbit's app allows users to book household helpers for various services, specifying the arrival time and duration. Customers are charged by the hour, with rates starting at ₹169. Snabbit differentiates itself by employing a full-stack model, managing the entire process from hiring and training to deployment. All experts are police-verified and trained.
The company's "captive supply with flexibility" model ensures that its home service experts are on full-time contracts, offering them stable incomes ranging from Rs 10,000 to Rs 35,000 per month, depending on the hours they work. This model aims to democratize access to domestic help, benefiting both the workers and the customers.
Snabbit currently operates in Mumbai, serving over 10,000 customers. The company uses geo-fencing to divide areas into small clusters, ensuring it can deliver on its 10-minute arrival promise. Snabbit has built-in protection measures like SOS buttons and active field support teams.
As consumer expectations increasingly favor convenience and speed, Snabbit is well-positioned to capitalize on this trend. The company's ability to maintain service quality and operational efficiency at scale will be crucial for its continued success. Snabbit's growth reflects the increasing digitization of urban life in India, where on-demand services are becoming increasingly popular.
