India's Home Service War, T-Hub’s Mobility Cohort, and Wow! Momo’s New CTO

For nearly a decade, if you wanted a beautician, plumber, or cleaner at your doorstep in India, there was only one name that mattered - UrbanClap, now Urban Company. It wasn’t just the biggest player in the instant house help market; it was the only serious one left standing after its early rival, Housejoy, crashed and burned. But the era of monopoly is ending. A new wave of competitors is entering the fray, and they’re coming with sharper playbooks, more funding, and the ambition to crack a market that’s set to explode in size.

The idea is not new. Back in 2014-15, UrbanClap and Housejoy promised a new way to book house cleaning, beauty services, and handymen - all with a tap on your phone. For a short while, both grew at breakneck speed, burning money to win market share. But Housejoy’s rocket ship collapsed almost as quickly as it took off. A toxic mix of operational mismanagement, cash burn without sustainable unit economics, and inability to maintain service quality buried the startup, leaving UrbanClap the undisputed king.

And UrbanClap didn’t just enjoy its monopoly - it guarded it fiercely. Competitors whisper that VCs were discouraged from backing rivals, while fledgling players found themselves squeezed out before they could scale. Whether or not you believe the “VC gatekeeping” theory, the fact is: for years, no one dared take Urban Company head-on.

That’s changed. In the last two years, the market has woken up. Players like Pronto, Pync, Snabbit, Yufy Helps, Swiggy’s Pyng, Clean Fanatics, Mr. Right, Helpr and CuDel are muscling into the space. Not all have raised large war chests - in fact, only a handful have landed $10M+ rounds; others are bootstrapped or running on smaller angel rounds. But the difference this time is intent: these aren’t small experiments - they’re well-funded (or well-planned) bets aiming to capture a chunk of the urban household economy.

Why now? Two reasons:

1. Market size: India’s home services market is projected to cross ₹1.5 lakh crore in the next 4-5 years, growing at over 15% CAGR, with urban nuclear families and rising disposable incomes driving demand.

2. Playbook maturity: Quick commerce proved you can burn big money to dominate a high-frequency, high-trust service category - and investors are ready to run the same experiment here.

The challenge, however, is loyalty. In quick commerce, you can hook users with speed and discounts. In house help, the equation is more complex - because the human element dominates. A beautician working for Urban Company in the morning might be on Pync in the afternoon and taking private clients in the evening. Gig worker churn is constant, and platforms can’t fully control it without breaking the flexibility that attracts workers in the first place.

Then there’s the operational mess. Unlike delivering a burger or a packet of atta, sending a plumber, cleaner, or masseuse into someone’s home involves unpredictable time slots, variable service quality, and the constant risk of one bad experience going viral. This is why even Swiggy, with all its logistical muscle, is treading carefully with Pyng.

We think this sector is about to see its “Zepto vs Blinkit” moment - multiple players burning aggressively to grab market share, while the incumbent tries to hold on with brand trust and scale. The winners will be those who can build not just a supply pool, but a loyal one, while keeping service quality high enough to justify repeat orders.

Urban Company’s moat is still deep. But history has shown that even the deepest moats can be crossed when challengers arrive in numbers, with capital, and with patience. Over the next 3-4 years, India’s instant house help market will decide whether it remains a one-horse town, or turns into the next big VC battleground.

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.

“It’s About Drive, It’s About Power”: 21 EV Startups Powering AIC T-Hub’s Fourth Mobility Cohort

T-Hub’s latest mobility cohort is buzzing with electric dreams - 21 startups tackling everything from EV charging grids to AI-powered fleets.

The Hyderabad-based incubator, born in 2015 from a Telangana-government–academia alliance, is offering them mentorship, market access, and pilot runs to supercharge growth. Think of it as a pit stop where India’s next-gen mobility champions get tuned up for the big race.

Read more here

“Korbo Lorbo Jeetbo”: Former Jubilant Executive Nimish Chaudhary Steps In As Wow! Momo’s CTO

Wow! Momo just got a tech upgrade with former Jubilant FoodWorks exec Nimish Chaudhary stepping in as CTO.

He’ll be cooking up the QSR unicorn’s in-house foodtech platform and sharpening the Wow! Eats app for a smoother, tastier digital experience. With a track record of building POS systems and scaling foodtech at Jubilant, Chaudhary’s ready to serve tech with extra zing.

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“Sab Changa Si”: Centre Clears 4 New Semiconductor Projects Worth INR 4,600 Cr

India’s chip dreams just got a big boost, the Centre has greenlit four semiconductor projects worth ₹4,584 Cr under the India Semiconductor Mission.

The new units will sprout in Odisha, Andhra Pradesh, and Punjab, promising to power everything from gadgets to EVs. IT minister Ashwini Vaishnaw says it’s another step toward making India a true silicon powerhouse.

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1. AI entertainment startup Dashverse has secured $13 Mn in a Series A round led by Peak XV Partners to boost tech, innovate products, and expand globally. Founded in 2023, it began with AI-driven comics via Dashtoon before branching into AI-generated videos with Frameo.AI
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2. Mumbai-based spacetech startup Manastu Space Technologies has raised $3 Mn in an extended Series A round led by Capital-A, with backing from multiple investors. The funds will help launch its eco-friendly satellite propulsion system into orbit.
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3. Atomic Capital has closed its maiden early-stage fund at ₹400 Cr to invest in 10–12 startups across sectors like F&B, personal care, jewellery, and pet care. The 2024-founded VC has already made four bets, deploying ₹50 Cr in the past year.
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4. Speciale Invest has closed its third fund at ₹600 Cr to back 18–20 seed-stage deeptech startups over the next four years. The fund will target sectors like spacetech, advanced manufacturing, energy, healthtech, and AI.
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5. Electric motorcycle maker Ultraviolette has raised $21 Mn (₹184 Cr) in a round led by TDK Ventures to accelerate global expansion and product innovation. The funding will also support scaling its EV platform and battery technology.
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6. Electronics manufacturer Brandworks Technologies has raised $7 Mn in a Series A round led by Cactus Partners, with participation from GVFL, Legacy Assets, and Hira Group. The funds will fuel R&D, global expansion, and manufacturing scale-up.
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7. Luxury beauty and hospitality brand Kimirica has raised $15 Mn from Carnelian Asset Management LLP, led by Vikas Khemani. The capital will support the brand’s growth and expansion plans.
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8. Quick services platform Pronto has raised $11 Mn in a Series A round co-led by General Catalyst and Glade Brook Capital, with support from Bain Capital Ventures. The funds will fuel the expansion of its instant househelp services.
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9. Luxury vacation rental platform Elivaas has raised ₹87 Cr (~$10 Mn) in a Series B round led by Vertex Ventures SEA & India, with participation from Peak XV Partners’ Surge and 3one4 Capital. The funds will aid its growth and market expansion.
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10. Gurugram-based NBFC Seeds Fincap has raised ₹50 Cr in a pre-Series B round led by existing investors Z47 and Lok Capital, with participation from Norinchukin Capital and Alteria Capital. The funding comes ahead of its planned Series B raise.
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11. Portfolio management firm Elever has raised $1.1 Mn in a pre-Series A round from Brand Capital, CXOs, existing investors, and promoters. The funds will help scale its PMS business, boost brand presence, and work toward its ₹1,000 Cr AUM target.
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12. Spike AI has raised $1.9 Mn in pre-seed funding led by Sorin Investments, with backing from Principal Venture Partners and others. The startup’s MAGI platform autonomously analyzes marketing channels and deploys real-time improvements.
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