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Jeet B Bhayani (SEBI RA)

22nd Sep · SEBI-Registered Analyst

India’s digital home services sector is expected to expand at a compound annual growth rate (CAGR) of 18-22% to achieve Rs. 8,500-8,800 crore (US$ 963 million-1 billion) by FY30, based on a report from Redseer Strategy Consultants. The research indicates that although the total value of the home services market stands at Rs. 5,10,000-5,21,000 crore (US$ 57-59 billion) in FY25, it is still predominantly unorganised, with online penetration below 1% of total transaction value. The digital portion, presently at Rs. 4,100-4,300 crore (US$ 464-487 million) is growing swiftly as urban consumers place greater emphasis on convenience, dependability, and responsibility. The report highlights ‘Instant Home Services’ as the upcoming major digital frontier, reflecting the triumph of quick commerce in fostering instant gratification behaviors. The eight biggest cities in India generate almost 90% of online demand, propelled by trust issues following COVID, fast urbanization, and a readiness to pay extra for quicker services. Nonetheless, platforms encounter major difficulties, such as guaranteeing the profitability of high-frequency, low-value jobs, sustaining a reliable workforce during busy times, and integrating service providers who possess minimal digital competencies. If addressed, Redseer forecasts this could establish a common consumer practice, reshaping urban home support networks

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