Introduction to Pronto
Urban India is becoming increasingly used to not having to wait — at least when it comes to getting goods and services delivered. The breakneck pace at which instant delivery apps have grown and continue to see adoption soar in the country is a testament to this change in consumer behavior. Pronto, a startup that lets users book and avail cleaning, laundry, and home services within 10 minutes, is capitalizing on this trend. The company has come out of stealth with a $2 million seed round led by Bain Capital Ventures at a post-money valuation of $12.5 million.
The Quick Service Model
Speed has become the new normal for many urban Indians. Pronto’s founder and CEO, Anjali Sardana, believes that people don’t want to wait even an hour to have their home cleaned. "When they need something, they need it right away," she said. "For that customer, having 10 minutes of service is huge because they no longer have to plan ahead." Pronto started piloting its service in December in Gurugram before launching its first hub in late March. So far, the company claims 70% of its customers have requested its services twice within 14 days.
Services Offered
Pronto offers cleaning, laundry, and cooking prep services with three different timing options: instant (10 minutes), scheduled, and recurring. Services are offered 24/7, and the startup guarantees 10-minute service access in all supported areas. The company claims more than 1,000 customers in the North Indian city of Gurugram. Pronto operates two hubs in Gurugram, each serving customers within a two-mile radius. Sardana said 70% to 80% of Pronto’s demand comes from within 500 meters — about two to three minutes — of each hub.
Treatment of Gig Workers
Investors are likely stoked to invest in such startups given their potential for growth, but Pronto’s funding is coming at a time when people are increasingly sensitive to how gig workers are treated by platforms. Pronto’s founder and CEO, Anjali Sardana, says her company aims to address gig workers’ concerns with an approach that is "win, win, win business" for all stakeholders. "What’s missing from a lot of the language around these services is that they treat workers like commodities. They treat them as inputs. That’s not the way we operate," she told TechCrunch.
Worker Benefits
Pronto says its workers can earn about ₹22,000 (about $258) a month if they work eight hours a day for 30 days. It also offers performance bonuses that can take their total pay to ₹25,000-₹26,000 (about $293 to $304) a month. These amounts are significantly higher than what domestic helpers in urban locations like the Delhi-NCR region are typically paid. Sardana says her startup also functions as an agency to help workers when they face exploitation or abuse — a problem domestic helpers have struggled with in the country for decades.
Payment Model
Pronto eschews the commission model employed by most services that employ gig workers, instead paying its workers per four-hour shift, once every two weeks. The company keeps the fees it charges customers. The company said it plans to start paying workers weekly, and even let them choose to be paid any time during their payment cycles, which domestic workers often ask for in such unorganized setups.
Future Plans
The startup plans to open 10 new hubs in Gurugram over the next three months, and grow its worker network to 700, and its staff count to 50 — up from over 150 workers and 21 employees currently. Ultimately, it plans to offer more services beyond cleaning and laundry, but its focus currently is on expansion — going deeper into Gurugram and entering new markets like Mumbai and Bengaluru.
Conclusion
In conclusion, Pronto is a startup that is capitalizing on the trend of instant delivery in urban India. The company offers cleaning, laundry, and home services within 10 minutes and has come out of stealth with a $2 million seed round. Pronto’s approach to treating gig workers with respect and fairness, and its plans for expansion, make it an interesting player in the Indian startup ecosystem. As the company grows and expands its services, it will be interesting to see how it navigates the challenges of the gig economy and continues to provide value to its customers and workers.
