In a significant boost to its mission of providing cutting-edge human resources technology to small and midsized businesses (SMBs), Homebase has successfully closed on $60 million in Series D financing. This latest round of funding was led by L Catterton Growth, the technology venture arm of one of the leading private equity firms, with participation from Emerson Collective and several returning investors including Notable Capital, Bain Capital Ventures, Khosla Ventures, Cowboy Ventures, and PLUS Capital.
Unlike many tech companies that design HR technology primarily for desk-based professionals, Homebase aims its sights on the two-thirds of the American SMB workforce engaged in hourly jobs that necessitate on-site presence. With this funding, Homebase plans to expand its offerings and reinforce its position in the market.
Key Features and Achievements of Homebase:
- Customer Base: Over 100,000 small businesses covering more than 2 million employees.
- Comprehensive Services: Includes payroll, shift scheduling, timesheets, hiring and onboarding, communication, and HR compliance.
- Funding Milestones: A total of $169 million in venture-backed capital, with the recent Series D funding marking a significant phase of growth.
What Sets Homebase Apart:
| Feature | Description |
|---|---|
| Payroll Management | Automated enhancements for streamlined operations. |
| Shift Scheduling | Easy-to-use tools for managing on-site hourly workers. |
| Hiring and Onboarding | Simplified process for recruiting and integrating new hires. |
| HR Compliance | Ensures businesses stay up-to-date with labor laws. |
| AI-Enhanced Features | Leveraging AI for better efficiency and worker satisfaction. |
John Waldmann, Homebase’s founder and CEO, emphasizes the unique challenges and needs of hourly workers, stating, “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.” This sentiment is echoed by Jeff Richards, an investor and managing partner at Notable Capital, who highlights the underserved nature of SMB technology for hourly workers and the transformative potential of AI in empowering small businesses.
Despite the competitive landscape with other players like Workstream, Salt Labs, and Clair focusing on hourly workforce solutions, Homebase’s growth trajectory is noteworthy. Jeff Richards points out the significance of Homebase’s achievements, with over 2% of the workforce utilizing their platform, showcasing its potential impact on the technology and economic landscape.
As Homebase moves forward, the company has also announced strategic appointments, including Philip Moon as its new CFO, bringing in experience from notable companies such as Square and Grove Collaborative. Co-founder and COO Rushi Patel has taken on the additional role of chief revenue officer, signaling Homebase’s commitment to growth and innovation.
With this new funding, Homebase aims not only to enhance its product offerings but also to fulfill its mission of making work more human and empowering small businesses to provide better jobs, thus contributing to the health of communities. “We are using technology to give workers superpowers and in fact, make the work more human, not less,” Waldmann concludes, underscoring the transformative potential of Homebase’s HR solutions for hourly workers.
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