Quick Commerce Startup Snabbit Funding Soars to $5.5 Million: Revolutionizing 15-Minute Home Services in India
Mumbai-based quick commerce startup snabbit has successfully raised $5.5 million in Series A funding to revolutionize India's on-demand home services market. Founded in 2024 by former Zepto executive Aayush Agarwal, Snabbit is pioneering a new approach in the quick commerce sector by offering 15-minute home services like cleaning, dishwashing, laundry, and kitchen preparations.
This funding round comes at a pivotal time when India's quick commerce sector is experiencing explosive growth, with the broader market expected to reach $5 billion by 2025, according to industry projections.
"Over the past few months, we've been extremely focused on understanding customer pain points and building a model that is not only scalable but truly game-changing," said Snabbit founder and CEO Aayush Agarwal. "The response, so far, has been highly encouraging—we've acquired thousands of customers within just a few kilometers of serviceable radius, driven primarily by strong word-of-mouth."
Quick Commerce Market in India: A Booming Sector
The quick commerce market in India has been witnessing unprecedented growth since 2021, initially accelerated by the pandemic when consumers shifted from local stores to online platforms. According to recent research, India's quick commerce sector is expected to grow by more than 40% annually until 2030.
While the initial wave of quick commerce focused primarily on grocery deliveries, the market has rapidly expanded into new categories, including on-demand home services—a sector where Snabbit is positioning itself as a pioneer.
Key Market Statistics:
• India's online on-demand home services market generated $217.1 million in 2022
• Expected to reach $1.09 billion by 2030 at a CAGR of 22.4%
• Cleaning services alone account for 40% of market share in the segment
• Quick commerce penetration in e-commerce is expected to grow from current 4.8% to 17-30% by 2028
Snabbit's Innovative Business Model
Snabbit differentiates itself in the crowded quick commerce space through its full-stack approach to home services. Unlike traditional platforms that merely connect customers with service providers, Snabbit takes complete control of the service delivery process:
• The company conducts outreach programs in low-income household areas to identify potential service partners
• All partners undergo rigorous screening and training covering behavioral, technical, and social skills
• Service personnel are deployed within 15 minutes of receiving a service request
• Partners receive a minimum guaranteed income regardless of inbound service requests
• Customers are charged on a time-based model rather than a task-based one, providing greater flexibility
"We are charging you based on the time the expert spends at your place. We have a gamut of services and everyone is trained at everything that we have in the catalog," explains Agarwal, highlighting the versatility of Snabbit's service offering.
This model mirrors the dark store concept popularized by grocery quick commerce players but applies it to service personnel instead of physical goods. Snabbit currently partners with over 100 trained professionals who operate within a carefully defined geographic radius to ensure rapid response times
Funding Details and Investor Insights
The $5.5 million Series A funding round was led by Elevation Capital, with participation from existing investor Nexus Venture Partners. This follows an earlier $1 million seed investment by Nexus Venture Partners in early 2024.
Several prominent angel investors also participated in this round, including:
- • Vidit Aatrey and Sanjeev Barnwal (Meesho co-founders)
- • Gaurav Munjal (Unacademy co-founder)
- • Niraj Singh (Spinny founder)
"Snabbit's platform which provides quick, on-demand and affordable home services through a hyperlocal network of professionals is a game-changer. Leveraging a unique model to deliver reliable and high-quality services swiftly, they stand out in the home services sector," noted Manish Advani, Vice President, Elevation Capital.
The involvement of prominent investors and entrepreneurs signals strong confidence in Snabbit's business model and growth potential. The funding will enable Snabbit to:
1. Add more neighborhoods across Mumbai for expanded service coverage
2. Make key hires across various departments to strengthen the team
3. Develop enhanced technology infrastructure to optimize operations
4. Expand training programs for service partners
Future Expansion Plans
With the fresh capital infusion, Snabbit is positioning itself for strategic expansion both geographically and in terms of service offerings. While the company currently operates primarily in Mumbai, plans are underway to expand to other major metropolitan areas in India.
In terms of service categories, Snabbit plans to expand into:
- • Baby care services
- • Elderly care assistance
- • Cooking and meal preparation
However, the company remains committed to focusing on high-frequency, low-ticket services that align with Indian consumer preferences. As Agarwal explains, "India prefers affordable, frequent services, and Snabbit aims to maximize wallet share rather than ticket size."
Market Opportunity:
With the online on-demand home services market in India projected to grow at a CAGR of 22.4% through 2030, Snabbit is well-positioned to capture a significant share of this expanding market. The company's focus on quality, reliability, and speed addresses key pain points in the traditional home services sector.
Conclusion: Disrupting the On-Demand Home Services Market
Snabbit's $5.5 million funding round marks a significant milestone in the evolution of India's quick commerce sector, which is increasingly expanding beyond grocery deliveries. By bringing the 15-minute delivery concept to home services, Snabbit is addressing a clear market need in a country where, according to industry experts, consumers have traditionally preferred the "Do It For Me" (DIFM) approach over DIY culture.
As quick commerce continues to reshape consumer expectations around speed and convenience, Snabbit's innovative approach to home services positions it well to capitalize on changing market dynamics. With strong investor backing and a clear vision for growth, the company appears poised to make a significant impact in India's rapidly expanding on-demand economy.
For startups in the quick commerce and home services space, Snabbit's journey offers valuable lessons in identifying market gaps, creating differentiated value propositions, and building scalable business models that address specific consumer pain points.