Quick home services startup Snabbit has raised $56 million as part of its Series D round, co-led by Susquehanna Venture Capital, Mirae Asset Venture Investments' (MAVI), Unicorn Growth Fund, and Bertelsmann India Investments (BII).
New investors on the company’s captable include MAVI, global marketplace investor FJ Labs and Susquehanna VC.
“This round is really a mandate to build for the long-term,” said company founder and chief executive Aayush Agarwal in an interview with Mint. “It's about deepening our presence in existing markets, launching in new micro markets in cities we're live in and experimenting and launching new categories that increase the customer's wallet share.”
India’s home services market was estimated at around $60 billion in FY25 and is projected to grow to nearly $100 billion by 2030, according to Redseer Strategy Consultants. With online penetration at 0.8%—expected to rise to 1.3% by FY30—the opportunity lies in digitizing a largely offline sector, where Snabbit competes with Urban Company and Pronto.
Valuation surge
The new round comes just five months after BII led Snabbit's $30 million Series C with a $15 million cheque. The company’s valuation has doubled to around $360 million, up from $180 million at the time of its Series C.
“It's obviously extending our runway from 18 months to around 3.5 to 4 years,” Agarwal said.
Category tailwinds
Home services is emerging as a venture capital hotspot, driven by rising urbanization and consumers’ growing preference to outsource routine tasks. The trend is reinforced by a new workforce cohort shaped by quick commerce platforms such as Swiggy Instamart, IPO-bound Zepto and Blinkit.
Snabbit has also entered a new category—home cooking—currently available in only one of the Bengaluru localities it services.
“We've already scaled this to 200 jobs a day,” said Agarwal. “The idea is to be very measured and not recklessly expand.”
Profit push
Snabbit claims that some of its initial micromarkets entered at launch are likely to show signs of profitability in the coming quarter. Micromarkets are hyperlocal clusters within a city where on-demand home services companies concentrate worker density to minimize travel time between jobs and improve completion rates.
While Agarwal declined to name specific micromarkets, he said this would happen across Delhi, Mumbai and Bengaluru.
“It will not just be one micromarket — it will be a spring of them one after another because we will focus on structural profitability as opposed to optical profitability.”
The company currently operates across 140 micromarkets in the Mumbai metropolitan region, Delhi NCR, Pune, Hyderabad and Bengaluru. Its immediate focus remains deepening its presence in the five cities where it already operates.
Snabbit says it has cut per-order burn by 50% as it prioritises density over rapid geographic expansion.
“We're focusing on density, depth over breadth,” Agarwal said. “We're increasing the number of experts, activating more customers and retaining them, driving more jobs for customer in the form of higher frequency.”
A tighter focus on existing geographies has also helped reduce customer acquisition costs—the company’s single largest spend. In the last four months alone, Snabbit claims to have reduced these costs by 65%.