Snabbit and Urban Company Scale Up Fast in Instant House-Help Market

India's instant house-help market is growing fast as Snabbit and Urban Company compete for customers with quick bookings and new services.

Growth And Numbers

Snabbit reported 64 lakh house-help jobs in Q2 FY27, which is up 61 percent from the previous quarter and 1,697 percent from the previous year. Its net transaction value for this segment rose 40 percent to ₹72 crore. The company also recorded 64.5 lakh jobs and ₹73 crore in net transaction value across its house-help, home-cook and home-salon services. Urban Company's InstaHelp business fulfilled 62 lakh orders in the same quarter, showing a 63 percent quarter-on-quarter increase, while its net transaction value grew 34 percent to ₹71 crore.

Losses And Costs

Both platforms are still making losses while they try to grow. Snabbit CEO Aayush Agarwal stated that the company cut its loss per job from about ₹1,500 at the start of FY26 to under ₹200 recently. However, Snabbit reported a segment EBITDA loss of ₹142 crore for house-help, which is 197 percent of its net transaction value. Urban Company's adjusted EBITDA loss per order improved from ₹346 to ₹279, but its InstaHelp segment still reported an adjusted EBITDA loss of ₹174 crore. Urban Company pointed to lower pricing from competition, new user discounts, and preparation for festive demand as reasons for these costs.

Funding And Competition

Urban Company's board approved a fresh capital raise of up to ₹2,500 crore, subject to shareholder approval, after ending Q2 FY27 with ₹1,901 crore in cash and treasury investments. JM Financial noted that this fundraise happens as rivals like Snabbit and Pronto secure major funding to expand. Snabbit raised $56 million in April 2026 at a $350 million valuation, while Pronto secured $20 million in May after a $25 million raise in March. JM Financial maintains a 'Reduce' rating on Urban Company with a price target of ₹160 for September 2027.

Context

Instant service platforms in India often spend heavily on customer discounts and professional training to build a dense local network in major cities. While high initial spending leads to steep losses, companies attempt to lower their per-order delivery costs as order volumes grow over time.