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Instant, multi-category home services: Sizing the opportunity

India’s high-frequency home operating services market represents a large and significantly under-digitized consumer opportunity. This note examines five key themes shaping the category’s growth:

1) expansion of the addressable market beyond traditional house help services

2) structural advantages of the business model compared with other consumer internet businesses

3) city-level execution and micro-market density

4) the path to profitability and the competitive landscape

5) the long-term opportunity to build a multi-category, highfrequency home services platform. To better understand the space, we met with Snabbit CEO Aayush Agarwal; key insights from this discussion are incorporated in this note

The broader thesis suggests that high-frequency home operating services remain one of India’s largest yet least-digitized consumer categories, with digital penetration below 2% among urban households in Metro and Tier-1 cities. Over the next five years, Snabbit expects urbanization, rising per-capita GDP, and higher discretionary incomes to drive category expansion. Across house help, home cooks, salon-at-home, and other household services, Snabbit believes it can build an ARR of approximately USD6b over this period. In the immediate term, however, the company remains focused on improving unit economics and deepening density within existing cities rather than pursuing aggressive geographic expansion.

Our estimates peg the total high frequency (house help) serviceable addressable market at ~USD3.7b (refer to Exhibit

1). This estimate captures two primary use cases:

a) ad-hoc support when a household’s regular help is unavailable

b) households transitioning entirely from conventional house-help arrangements to an on-demand model.

The opportunity is larger if adjacencies play out; house help replacement and displacement opportunity could be USD3.7b

* The company believes house help, cooks, salon-at-home, elderly care, and other adjacencies unlock a much larger digital services opportunity (USD9- 10b).

* It could be slightly early to estimate the adjacent demand vectors, but our estimates suggest house help demand alone could be USD3.7b. As shown in Exhibit 1, we present base, bull, and bear case scenarios for house-help adoption in India, taking into account both the potential household replacement demand as well as ad-hoc leave replacement demand that is currently playing out in key micro markets.

* Snabbit is being built across multiple high-frequency home operating services, with house help currently the largest category. Over time, Snabbit intends to expand into home cooks, salon-at-home, drivers, childcare, elderly care, and other household services, materially increasing customer frequency.

* Salon-at-home is being approached differently by unbundling low-AOV, highfrequency beauty services, particularly functional and repetitive needs such as threading and waxing, and making them available instantly. The uptake of such adjacent services should drive higher frequency for both the industry as well as Snabbit.

* The current focus remains on the top metro cities where customer density supports faster marketplace development. Over the longer term, the company estimates that the top 50 cities could support 1,500+ micro-markets, with a mature network eventually scaling to ~1,500 daily jobs per micro-market from house-help services alone. This potential is already visible across several of Snabbit’s mature micro-markets, which have reached these volumes within 12– 18 months and continue to grow. We believe Tier-2 adoption could follow a similar trajectory to food delivery, ride-hailing, and quick commerce, as consumer trust in on-demand home services improves.

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