Homebase is HR software that targets the two-thirds of the American SMB workforce with hourly jobs that require them to be on-site. After nabbing over 100,000 small businesses as customers, covering over 2 mon employees, Homebase closed on $60 mn in Series D financing.
Homebase offers payroll, shift scheduling, timesheets, hiring and onboarding, communication and HR compliance.
L Catterton Growth, the tech venture arm of one of the top private equity firms, led the round and was joined by Emerson Collective. The round also includes existing investors, Notable Capital, Bain Capital Ventures, Khosla Ventures, Cowboy Ventures and PLUS Capital.
While there are countless tech companies that make HR technology for small and midsized businesses, much of it is geared toward “professionals who sit at desks in some capacity
John Waldmann, Homebase founder and CEO
There are more than 5 million small businesses in the US, and roughly half of them are spending as much as 7 hours each week (essentially a full day every week!) doing time-consuming, yet necessary tasks like paperwork, payroll, and scheduling. Most of it’s done by hand or with homemade spreadsheets.
Sure, there’s software out there. But most of it was built for big companies. Or it was designed for employees who spend all day working on computers. Either way, it wasn’t built for local restaurants, shops, and services—or the hourly employees that work at them.
Hourly workers have a lot of the same desires for flexibility and certainty, but it shows up in entirely different ways, and that’s been our core mission
SMB tech for frontline or hourly workers doesn’t get nearly the attention it deserves despite the fact that it may affect over 55% of the workforce.
Artificial intelligence will be a major enabler of small businesses, and companies like Homebase will enable them to build businesses.
Homebase in 2021 has raised $71 mn. Since then, the company leaned into additional financial services products and Artificial Intelligence enhanced features like improvements to its automated payroll capabilities. It is also working on automated tip management.
The round gives Homebase a total of $169 mn in venture-backed capital. In 2021, the company’s valuation was between $500 mn and $600 mn.
In addition to R&D investments, Homebase made other changes earlier this year with the appointment of Philip Moon as its new CFO.
Moon previously held strategic finance roles at companies such as Square and Grove Collaborative. Company co-founder and chief operating officer Rushi Patel also added the title of chief revenue officer.
by Peter Sonner
