Bain Capital Ventures Bets on India’s Pronto Amidst Gig Worker Concerns
Amidst the rapid growth of instant delivery apps in India, Bain Capital Ventures has made a strategic investment in Pronto, an Indian startup focused on providing on-demand home services. This move comes at a time when the treatment of gig workers is under increased scrutiny, raising questions about ethical practices in the burgeoning quick-commerce sector.
Pronto, which recently emerged from stealth mode, secured $2 million in seed funding led by Bain Capital Ventures, valuing the company at $12.5 million post-money. The startup allows users to book services like cleaning, laundry, and home maintenance with a promise of availability within 10 minutes. This quick-service model aims to capitalize on the evolving expectations of urban Indian consumers who are increasingly accustomed to instant gratification.
However, Pronto’s funding coincides with growing concerns regarding the well-being of gig economy workers. Recently, Urban Company, a similar venture-backed home services provider, faced public criticism for launching a 15-minute cleaning service called “Insta Maids.” The backlash centered on the language used in the promotional campaign, which was perceived as insensitive to the workers involved. Although Urban Company later rebranded the service to “Insta Help,” the incident highlighted the need for companies to prioritize the fair treatment and respect of their workforce.
In contrast to the commission-based model prevalent in the gig economy, Pronto has adopted a different approach. The company pays its workers a fixed rate per four-hour shift, with payments made bi-weekly. Additionally, Pronto plans to implement weekly payments and offer workers the flexibility to access their earnings at any time during their payment cycles. This initiative aims to provide financial stability and address the common challenges faced by workers in unorganized setups.
According to Pronto’s founder and CEO, Anjali Sardana, the company is committed to a “win, win, win business” model that benefits all stakeholders. She emphasized the importance of treating workers with empathy and avoiding the perception of them as mere commodities. Sardana also mentioned plans to introduce a health insurance product for workers and provide training and upskilling opportunities based on customer feedback.
India has a large domestic workforce, estimated at nearly 4 million by government sources and potentially as high as 50 million by unofficial sources. The majority of these workers operate within the informal labor market, which Pronto identifies as its primary competition. The company claims that its workers can earn approximately ₹22,000 (about $258) per month for eight-hour workdays, with the potential to earn up to ₹25,000-₹26,000 (about $293 to $304) with performance bonuses. These figures are notably higher than the average wages for domestic helpers in urban areas like Delhi-NCR, which are around ₹9,000, as per the International Domestic Workers Federation.
Pronto currently operates two hubs in Gurugram, serving customers within a two-mile radius. The company plans to expand its presence by opening 10 new hubs in Gurugram over the next three months and increasing its worker network to 700. Future plans include expanding into new markets like Mumbai and Bengaluru and offering a broader range of services beyond cleaning and laundry.
By focusing on fair labor practices, providing competitive wages, and offering on-demand services, Pronto aims to establish itself as a leader in the evolving landscape of India’s home services market. The company’s success will depend on its ability to balance the demands of speed and convenience with the ethical treatment of its workforce.
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