Snabbit absorbs Pync as funding and traction builds up in the quick services industry
Quick-service player Snabbit has acquired smaller rival Pync, absorbing its founders and a 20-member team. The move signals sector consolidation as Snabbit valued at $180M valuation bolsters operations in a steadily growing market.
Quick services provider Snabbit on Thursday said it has absorbed rival Pync's founding team as well as an over 20 member team as pace in the quick services industry picks up, bringing out clear market leaders.
Snabbit's move suggests consolidation in a category that barely existed a year ago. According to media reports, Urban Company's Insta Help is a market leader in the category, followed by Bengaluru-based Snabbit and Pronto. Other players in the space include Pync and Broomies.
Pync founders Harsh Prateek, Mayank S, and Dev Priyam are set to join Snabbit in senior business operations roles, with the 20+ member Pync team also expected to be onboarded. The deal’s structure and valuation were not disclosed.
The company initially offered car-cleaning subscription before pivoting to house-help segment. Unlike its peers that have raised about $70 million, Pync had only raised $2 million in seed funding last year. According to Tracxn, it was last valued at Rs 54.5 Crore (about $6 million), while Snabbit was valued at $180 million in its latest funding round in October.
“We have been building in the same category and liked each other’s approach and execution. There is strong alignment in how we think about operations, consumer experience and scale. Our capability of running lean multi-category operations together with Snabbit's scale and execution excellence will make an exceptionally strong team. Accelerating our journey to drive massive impact. And yes, the fact that ‘Pink’ runs through both brands is a nice coincidence," said Harsh Prateek, Co-founder, Pync. The startup had served over 25,000 households, with 1,000+ service professionals and was onboarding around 200 new service partners each week while operating independently, stated the press note.
The quick services sector has been heating up with capital infusions as well as high cash burn primarily led by expansion and heavy discounting. According to the latest report by The Economic Times, monthly burn among top players has increased from about $2–3 million in August to $7–$8 million by December. To support expansion and acquisition of new users, platforms have been steadily raising, according to multiple media reports Snabbit is in talks to raise another $100-$120 million in its fifth funding round since inception while Pronto is set to raise $25 million at a $100 million valuation.
“High-frequency home services is the largest consumer internet disruption of this decade. It is a complex business that will be won through operational excellence and relentless, day-to-day execution. I’m excited to welcome Harsh, Mayank, and Dev to Snabbit as we join forces to build the category of the decade. Their experience in running a lean, tight ship and their deep obsession with this category will add immense strength to our journey,” shared Aayush Agarwal, Founder, Snabbit.