Quick home services boom: VCs interested, but startups struggle to stand out

$100 and 120 million at a $500-550 million valuation. The latter, which first raised $2 million in May, is in talks to raise another round of funding, according to news website Moneycontrol.com.While more of these companies are likely to appear in 2026 and secure funding, they remain largely similar, with investors focused primarily on the size and disruptive potential of the market.In a business burdened by high customer acquisition costs, the core challenge lies in cracking unit economics.

Yet shifting behaviour, particularly among younger generations entering the workforce, is what creates the market opportunity in the first place.“There’s an entire generation looking for on-demand home services and willing to pay a premium for convenience,” said Vikram Gupta, founder and managing partner at IvyCap Ventures, which invested in Taskbob, a home services company back in 2016 and exited later. “Back in 2017, demand was still getting organized, and people weren’t sure whether a home-services business would work."The home services market presents a substantial and growing opportunity.

In 2024-25, the overall market was estimated at $60 billion, according to a RedSeer report. However, the online segment, where these new-age companies operate, remains small, at just under $500 million, though it is projected to grow at a steady 18-22% compound annual growth rate through 2029-30.However, what's missing at the moment is how these companies will scale without a steady stream of capital, and whether this is a blip or whether consumer behaviour will actually change meaningfully in the long run.The strategy these companies employ is simple: target microhubs.