Pronto Secures $2M Seed Funding for On-Demand Home Services

Pronto Raises $2M for 10-Minute Home Services in India

Indian startup Pronto has secured $2 million in seed funding led by Bain Capital Ventures. The company offers on-demand cleaning, laundry, and cooking prep services, promising delivery within 10 minutes. This funding round values Pronto at $12.5 million post-money.

Rapid Growth in India's On-Demand Sector

Pronto's launch coincides with the rapid growth of instant delivery services in India. Apps like Blinkit, Zepto, and Swiggy Instamart have seen soaring adoption rates, demonstrating a shift in consumer behavior towards on-demand services.

Addressing Gig Worker Concerns

Pronto's funding comes amid growing concerns about gig worker treatment. The startup aims to differentiate itself by prioritizing worker welfare. Founder and CEO Anjali Sardana emphasizes a "win-win-win" approach for all stakeholders.

“What’s missing from a lot of the language around these services is that they treat workers like commodities. That’s not the way we operate,” Sardana told TechCrunch. “We maintain close contact with our workers to ensure empathy and understanding.”

Pronto offers instant (10-minute), scheduled, and recurring services, operating 24/7. The company claims over 1,000 customers in Gurugram, a North Indian city.

Competitive Landscape and Worker Compensation

India's domestic worker market is vast, with estimates ranging from 4 million to 50 million. Pronto aims to compete with this largely informal sector by offering competitive wages and benefits. Workers can reportedly earn ₹22,000 (about $258) monthly working eight hours daily, with performance bonuses potentially increasing earnings to ₹25,000-₹26,000 (about $293 to $304). These figures are significantly higher than the typical ₹9,000 earned by domestic helpers in the Delhi-NCR region.

Pronto also provides support to workers facing exploitation or abuse, a prevalent issue in the industry.

The Quick-Service Model

Pronto's CEO believes consumers increasingly expect immediate service. The company boasts a 70% return customer rate within 14 days, validating its 10-minute delivery model.

Currently operating two hubs in Gurugram, Pronto serves a two-mile radius around each location. The majority of demand originates within 500 meters of the hubs.

A Different Approach to Compensation

Instead of commissions, Pronto pays workers per four-hour shift, bi-weekly. The company plans to transition to weekly payments and offer more flexible payment options. Future plans include fintech products and health insurance for workers.

Expansion Plans

Pronto plans to expand its network to 10 hubs in Gurugram within the next three months, increasing its worker base to 700 and staff to 50. Long-term goals include expanding service offerings and entering new markets like Mumbai and Bengaluru.