Winning Bizness Desk
Mumbai.Mumbai’s urban lifestyle is changing fast as instant home service apps become a daily necessity for millions. What once seemed like a simple idea — getting a helper at home within minutes through a smartphone — is now a widespread reality. In March, these platforms crossed one crore monthly active users, signalling a major shift in how households manage chores.
Rapid rise in users and bookings nationwide
According to a research note by global financial services firm Morgan Stanley, platforms such as Urban Company, Pronto and Snabbit together recorded 1.04 crore monthly active users in March. The growth is equally visible in usage patterns, with bookings and daily orders rising steadily across cities.
- Monthly active users cross 1.04 crore mark
- Total monthly bookings exceed 20 lakh
- Urban Company leads but faces rising competition
New players gain ground in competitive market
While Urban Company continues to hold the largest user base, newer platforms are quickly capturing fresh demand. In March, Pronto led app downloads with a 43 percent share, followed by Urban Company at 31 percent and Snabbit at 26 percent. This trend suggests a clear shift in user preference and growing competition.
The increasing share of daily and monthly active users for Pronto and Snabbit indicates that customer loyalty is gradually moving towards newer platforms. The market is no longer dominated by a single player, making the competition sharper.
Funding race heats up as valuations rise
The surge in demand has also triggered intense investor interest. Companies are raising funds at significantly higher valuations, reflecting confidence in future growth.
- Pronto plans to raise Rs 141–188 crore
- Estimated valuation stands at Rs 1,883 crore
- Snabbit in talks to raise Rs 565–659 crore
- Likely valuation between Rs 3,295–3,766 crore
Urban Company’s InstaHelp vertical alone has crossed 10 lakh bookings every month, while Pronto is handling nearly 18,000 orders daily, underlining the scale of expansion.
Industry growth strong but profitability uncertain
Despite strong growth, questions remain over long-term profitability. Unlike quick commerce, instant home services rely heavily on trained workers who must be available in real time. Companies are spending heavily on onboarding, retaining workers and attracting customers.
- High costs in worker training and incentives
- Significant spending on customer acquisition
- Dense local networks take time and money
The road ahead for sustainable business model
Investors are currently backing growth, but the real test will come as the market matures. Building strong unit economics will be crucial for long-term success. As demand rises and competition intensifies, companies will need to balance expansion with profitability to stay ahead in this fast-evolving sector.
