A decade ago, India's home-services market was full of startups. Housejoy, Taskbob, LocalOye and UrbanClap were all trying to organise plumbers, cleaners and electricians. Most struggled. Taskbob shut down, Housejoy retreated from seven cities, and UrbanClap, later renamed Urban Company, became the biggest survivor.
Now Urban Company finds itself in another expensive fight, this time over sweeping floors and washing utensils. Snabbit started instant household help in Mumbai in 2024. Urban Company launched InstaHelp in March 2025, months before its IPO, and Pronto joined the race. Customers could suddenly book help within minutes, often at heavily discounted prices.
There was a reason Urban Company hadn't offered this for years. A scheduled ₹1,000 cleaning job is easier to manage than a ₹150 visit that requires someone to be available nearby. Workers still need to be paid when bookings are slow. Yet once Snabbit showed demand, Urban Company couldn't afford to let a rival build a daily relationship with its customers.
That fear is getting expensive. In June, the three platforms were estimated to be burning ₹140–150 crore a month. InstaHelp completed 62 lakh bookings in Q2 FY27, but reported only ₹20.37 crore in revenue and a ₹174 crore adjusted EBITDA loss. That's ₹279 lost per booking, against an average customer spend of ₹114. Losses per booking are falling, but losses overall are growing.
Snabbit's FY26 loss reached ₹167.75 crore on just ₹12.25 crore in operating revenue. It has raised over $112 million, while Pronto has raised around $58 million. Urban Company, meanwhile, holds ₹1,901 crore in cash and investments and is seeking another ₹2,500 crore. They have money, but none can keep buying orders forever.
The real test comes when discounts disappear. A household happy to pay ₹99 for help might think twice at ₹249, particularly when a regular maid costs less. Urban Company has an advantage: about 45% of new users in overlapping neighbourhoods arrive through InstaHelp, and some may later book its more expensive services. But that extra business hasn't yet been shown to justify the spending.
Over time, we expect fewer national players and more small operators serving dense neighbourhoods, where workers travel less and repeat bookings are easier to secure. The old home-services war showed that being the last company standing doesn't automatically mean you've built a profitable business. This one could prove even costlier.
Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.
“Mala Zau De”: Rapido Booked By Pune Police
Pune Police has booked Rapido for allegedly operating bike-taxi services without the required licences and approvals.
The action highlights growing regulatory hurdles for bike-taxi platforms as authorities crack down on unlicensed operations.
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“Dhandha Takatak Chal Raha Hai”: Libas Adds 9 New Stores
Ethnic wear brand Libas is opening nine new stores across Bengaluru, Jaipur, Kanpur, Noida, and Jabalpur during Navratri.
The expansion strengthens its offline presence while complementing its online business.
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“Waqt Rehte Sudhar Jaao”: “FSSAI Sends Notices To BigBasket And Flipkart
FSSAI has issued show-cause notices to BigBasket, Flipkart and Gemini Edibles & Fats India over allegedly misleading health claims used to market Freedom Cooking Rice Bran Oil.
The regulator said edible oils cannot be linked to heart-health benefits under the applicable advertising rules.
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“Kaan Khol Ke Sun Lo”: SEBI Proposes New SME IPO Rules
SEBI has proposed a broad overhaul of SME IPO rules, including a Rs 3 Cr average annual operating-profit threshold and market-cap-based listing criteria.
SEBI has suggested cutting the minimum IPO application to Rs 1 lakh, allowing one-share trading and removing mandatory market-making.
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“Kuch Kar Dikhana Hai”: Cult Gets SEBI Clearance For IPO
Cult.fit has received SEBI’s approval for its ₹950 Cr IPO, around three months after filing its draft papers.
The offering will include a fresh issue of up to ₹950 Cr and an offer for sale of 17.86 Cr shares.
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“Sapne Dekhe Bade Bade”: Burma Burma Parent Files DRHP
Burma Burma’s parent company, Hunger Pangs Limited, has filed draft papers with SEBI for its IPO.
The offering includes a fresh issue of ₹150 Cr to fuel its next phase of growth.
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“Kar Chale Hum Vida”: Goldman Sachs Sells Eternal Shares
Goldman Sachs sold Eternal shares worth ₹169 Cr through a block deal at ₹316 per share.
The move comes amid a recent rally in the company’s stock and improving financial performance.
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Urban Company’s board has approved plans to raise up to ₹2,500 Cr through debt or equity.
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Enterprise AI startup RapidCanvas has raised $29 Mn in a Series B round led by Vertex Ventures SEA & India to expand its go-to-market teams.
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Battery-swapping startup Battery Smart has raised $10 Mn from an existing investor to expand its network.
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CapGrid has raised Rs 46.28 Cr in a pre-Series B round led by Hero Enterprise Partner Ventures, with Anicut Capital, Axilor Ventures, Nexus Venture Partners and Amit Jain participating.
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