India’s Online Home Services Market To Reach Rs 88 Billion By FY30

India's burgeoning online home services sector is forecasted to grow at a compound annual growth rate (CAGR) of 18-22 percent, expanding from Rs 41-43 billion in FY25 to Rs 85-88 billion by FY30, according to a report by Redseer Strategy Consultants released on September 21, 2025. This rapid expansion is fuelled by escalating urban demand for convenient, reliable, and swift services such as plumbing, cleaning, and electrical repairs, mirroring the transformative impact of quick commerce on daily consumer habits.

Redseer, a Mumbai-based firm specialising in Asia-Pacific market analysis, highlights "Instant Home Services" as the next digital frontier, positioning it as an on-demand support system that bridges traditional informal labour with tech-enabled platforms.

The overall home services market in India, valued at Rs 5,100-5,210 billion in FY25, remains overwhelmingly unorganised and offline, with online penetration below 1 per cent of net transaction value. This low baseline underscores the sector's untapped potential, as digital platforms like Urban Company and Housejoy gain traction by offering vetted professionals and transparent pricing.

The report draws parallels to quick commerce giants such as Blinkit and Zepto, which conditioned consumers to expect minute-level deliveries; similarly, instant home services are fostering a new expectation of rapid fulfilment for household needs, particularly among time-strapped professionals in metropolitan areas.

Demand is heavily concentrated in India's eight largest cities—Mumbai, Delhi, Bengaluru, Hyderabad, Chennai, Pune, Kolkata, and Ahmedabad—which account for 85-90 percent of online transactions. Key drivers include a post-COVID emphasis on trust and safety through verified service providers, rapid urbanisation swelling the middle class to over 400 million, and a willingness to pay premiums for speed and accountability.

These trends align with broader digital adoption in India, where smartphone penetration exceeds 800 million users, enabling app-based bookings that traditional networks often fail to match in efficiency.

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However, scaling this model poses challenges, including ensuring economic viability for low-value, high-frequency tasks, securing a steady supply of skilled workers during peaks, and competing with entrenched informal networks that dominate 99 per cent of the market. Platforms must also address workforce upskilling for digital tools without hindering growth.

"Instant services feel like the natural next step... but this model brings its own set of challenges," said Rohan Agarwal, partner at Redseer. "It remains to be seen whether platforms can solve the complexity of real-time fulfilment... If they get this right, it won't just be a new category—it'll be a whole new habit for urban India."

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