Pronto, a startup focused on home services, has successfully completed its Series B funding round, securing $45 million at a valuation of $200 million, as announced by founder Anjali Sardana.
This latest funding round saw a significant boost when Lachy Groom, founder of the robotics company Physical Intelligence, contributed a $20 million investment. This influx of capital has allowed Pronto's valuation to double in less than a month.
Sardana emphasized the company's strategy for the year, stating, "Scaling supply is really what we're focusing on this year," highlighting the need for deeper market penetration.
The initial $25 million investment in this Series B round was led by Epiq Capital, with additional contributions from Glade Brook Capital, General Catalyst, and Bain Capital Ventures.
This fundraising comes shortly after competitor Snabbit raised $56 million in a Series D round, achieving a valuation of nearly $400 million, intensifying the competition in India's largely unorganized home services sector.
According to Redseer Strategy Consultants, India's home services market is projected to grow from approximately $60 billion in 2024-25 to nearly $100 billion by 2030, with online penetration expected to increase from 0.8% to 1.3% by 2029-30. This presents a significant opportunity for Pronto and its competitors to digitize an industry that remains predominantly offline.
Currently, Pronto operates across 190 micromarkets in 10 cities, averaging about 26,000 bookings per day.
Addressing Supply Challenges
Supply constraints have posed challenges for home service companies, particularly during election periods in states like West Bengal, Assam, Tamil Nadu, and Kerala, as well as during seasonal disruptions. These include the summer months when many migrant workers return to their villages and fluctuations in demand around major festivals.
Pronto operates with a 65% utilization rate of its partner network and is actively working to expand this network. The number of professionals associated with Pronto has increased from 1,440 in January to 6,500, with plans for further expansion.
While customer acquisition costs have been reduced to approximately ₹300 through effective performance marketing, the real challenge lies in acquiring partners. The company reports that around 60% of new partners come through referrals, and it is implementing incentive programs to stabilize its workforce.
Incentives include milestone-based payouts and a referral leaderboard, where top referrers can earn significant bonuses for bringing new partners into the network.
To mitigate risks associated with seasonal demand fluctuations, Pronto is diversifying its workforce and planning ahead for known seasonal challenges, particularly in regions like the National Capital Region (NCR), which currently accounts for 65% of its business.
Future Directions
Looking ahead, Pronto is considering the launch of a business-to-business segment within the next two years. The initial B2B offering is expected to launch in 2026 and will closely resemble its B2C services. However, Sardana clarified that Pronto aims to provide a more structured service rather than merely functioning as a staffing agency.
