“In today’s ever-growing world of tech companies, there is a vast selection of HR technology available for small and mid-sized businesses,” explains John Waldmann, founder and CEO of Homebase. However, he notes that much of this technology is primarily aimed towards “professionals who sit at desks in some capacity.”
Homebase is changing the game by providing HR software specifically targeting the two-thirds of American SMB (small and medium-sized businesses) workforce with hourly jobs that require them to be on site. With over 100,000 small businesses utilizing their services and over 2 million employees covered, Homebase recently announced a successful Series D financing round of $60 million. L Catterton Growth led the funding, accompanied by Emerson Collective and existing investors Notable Capital, Bain Capital Ventures, Khosla Ventures, Cowboy Ventures, and PLUS Capital.
Homebase offers a range of features including payroll, shift scheduling, timesheets, hiring and onboarding, communication, and HR compliance.
“It’s not easy to secure funding in today’s market, so to do so with a top private equity firm like L Catterton Growth speaks volumes about the team and their performance,” says Jeff Richards, investor and managing partner at Notable Capital (formerly GGV Capital).
“Hourly workers have the same desire for flexibility and certainty as any other employee, but it manifests differently,” adds Waldmann. “That’s been our core mission at Homebase.”
Richards agrees, stating that SMB tech for hourly and frontline workers doesn’t receive the attention it deserves, despite potentially impacting over 55% of the workforce. He also believes that artificial intelligence will play a crucial role in the success of small businesses, with companies like Homebase enabling them to “build amazing businesses.”
That said, Homebase is not alone in serving the hourly worker market. Other companies include Workstream, which offers mobile-first hiring and onboarding tools, Salt Labs, a rewards platform, and Clair, a shift payment tool. However, Richards argues that Homebase’s growth is impressive.
“To have over 2 million workers utilizing Homebase, which accounts for over 2% of the workforce, is remarkable for a private company,” Richards notes. “If this trend continues, it could have a significant impact on the technology and economic landscape.”
In 2021, TechCrunch reported on Homebase when the company secured $71 million in funding. Since then, the company has expanded its financial services offerings and implemented AI-enhanced features, such as improving its automated payroll capabilities. Additionally, Homebase is currently developing an automated ticket management system.
The latest round of funding brings Homebase’s total venture-backed capital to $169 million. In 2021, sources revealed to TechCrunch’s Ingrid Lunden that the company’s valuation was between $500 million and $600 million. Waldmann did not confirm this, but he did mention that it was not a down round.
Earlier this year, Homebase made some changes within its leadership team. Philip Moon, formerly in strategic finance roles at Square and Grove Collective, was appointed as the company’s new CFO. In addition, co-founder and chief operating officer Rushi Patel added the title of chief revenue officer.
“At Homebase, we are using technology to empower workers and make their jobs more human, not less,” says Waldmann. “There is overwhelming evidence that shows the importance of good jobs for the health of communities. Small businesses have always been at the forefront of providing these jobs, and it is our mission to make them even better.”
