Instant home services startup Pronto has raised $20 million (around Rs 189 crore) from US-based investor Lachy Groom, known for backing crypto and software companies. The fresh funding has pushed the company’s valuation to $200 million, nearly doubling from its level in March, founder Anjali Sardana said.
The new investment is an extension of Pronto’s earlier $25 million round led by Epiq Capital, General Catalyst, and Bain Capital Ventures. With this extension, the total size of the round has reached $45 million.
Sardana said the company will focus heavily on expanding its supply base. “Ensuring steady supply is the top priority,” she noted, adding that referral programmes will be used to onboard more service professionals.
Strong demand but supply crunch
Pronto saw a 40% month-on-month rise in orders in April, while average order values stayed in the Rs 130–140 range due to lower discounting and ongoing supply constraints.
The startup, like others in the sector, has been affected by a shortage of service professionals. In several cities including Delhi-NCR, Mumbai, and Bengaluru, users reported limited availability of slots, partly due to seasonal movement of workers during elections and harvest periods.
Founder Sardana said the imbalance in the industry is currently driven more by supply constraints than demand weakness, with capital increasingly flowing into scaling the workforce.
Rising competition in instant services
The sector is becoming more competitive as venture-backed players expand aggressively. Rival Snabbit recently raised $56 million, valuing it at $350 million.
According to reports, players like Pronto, Snabbit, and Urban Company are competing in the fast-growing instant home services space, which includes housekeeping and other on-demand services.
A Morgan Stanley estimate suggests these platforms collectively reached around 10 million monthly users in March, with over one million bookings recorded by leading players in a single month.
Expansion and new services
Pronto, which recently crossed one year of operations, has completed over 500,000 bookings and spent just over $8 million in burn over the past year.
The company has also begun expanding beyond housekeeping, launching car wash services in Gurugram and Mumbai and planning to introduce home-cooked meal services in Bengaluru.
Industry outlook
Despite rising competition and cash burn, the sector continues to grow rapidly. Consulting firm RedSeer estimates India’s home services market could expand at 18–22% CAGR to reach Rs 8,500–8,800 crore by FY30.
