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Jeet B Bhayani (SEBI RA)

28th Sep · SEBI-Registered Analyst

India's online home services sector is anticipated 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 market for home services is assessed at Rs. 5,10,000-5,21,000 crore (US$ 57-59 billion) in FY25 is primarily unorganised, with online penetration below 1% of the total transaction value. The digital portion, presently at Rs. 4,100-4,300 crore (US$ 464-487 million) is growing swiftly as city consumers place greater importance on convenience, trustworthiness, 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 largest cities in India represent almost 90% of online demand, influenced by trust issues after COVID, fast urban growth, and a readiness to pay extra for speed. Nevertheless, platforms encounter major obstacles, such as guaranteeing the financial viability of rapid, low-value tasks, sustaining a consistent workforce during busy times, and integrating service providers with minimal digital proficiency. If addressed, Redseer anticipates this could establish a common consumer behavior, transforming urban household support structures.

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