Venture capital firm Elevation Capital has admitted to an "not ideal" conflict of interest by investing in both Snabbit and Urban Company. Both startups are fighting for dominance in India's instant home services market, with combined monthly cash burn reaching approximately ₹150 crore in June 2026.
Mukul Arora, co-managing partner at Elevation Capital, has publicly addressed the firm’s dual investment in two direct competitors within the Indian instant home services sector. Elevation Capital currently supports Snabbit through its early-stage fund and holds a stake in Urban Company via its late-stage investment arm. This overlap has created a unique situation for the firm as both companies now battle for market share in the on-demand home assistance category.
Origins of the Investment Conflict
According to the firm, the competing interests were not part of an original investment strategy. Elevation Capital participated in Snabbit’s Series A funding round in January 2025. Subsequently, in mid-2025, the firm invested in Urban Company. The firm clarified that at the time of the Snabbit investment, Urban Company had not yet entered the specific high-speed, on-demand home services segment. The rivalry emerged only after Urban Company’s management, led by CEO Abhiraj Bhal, pivoted to capture this niche with significant resource deployment.
Competitive Intensity and Cash Burn
The market for instant home services has become highly competitive, characterized by aggressive customer acquisition strategies, including deep discounts and Re 1 service offers. Industry data from June 2026 indicates that Snabbit processed approximately 1.51 million orders, narrowly edging out Urban Company’s Insta Help division, which recorded 1.5 million orders. Another player, Pronto, also remains active with roughly 950,000 orders during the same period. Collectively, these firms are estimated to have spent nearly ₹150 crore in June alone to sustain these growth rates, highlighting the heavy capital requirements currently needed to build a user base.
Governance and Internal Safeguards
To mitigate potential conflicts, Elevation Capital has stated that it enforces strict internal separation between the teams overseeing Snabbit and Urban Company. The firm noted that because Urban Company is a listed entity, Elevation does not occupy a board seat, which prevents the sharing of sensitive or proprietary information. Despite these structural barriers, the firm acknowledges that the overlapping interest remains challenging to navigate while both companies continue to compete directly for the same customers.
Sector Outlook and Future Capitalization
Despite the current high rate of cash burn, Elevation Capital maintains a positive outlook on the long-term viability of the instant home services market. The firm draws comparisons to the early evolution of India’s food delivery sector, noting that current growth metrics, customer retention, and usage frequency in home services are currently exceeding those seen in the early days of food delivery platforms. The firm projects a potential market size of 20 to 25 million monthly transacting users within the next three to five years. Investors should track whether these companies can move toward better unit economics as the market matures or if the need for aggressive discounting will continue to pressure profit margins.