Service 1 Financial sells ‘home comfort as a service’, raises $20 million in debt financing • TechCrunch

Let’s face it. Most people are not early adopters, especially when it comes to their homes. Take, for example, a kitchen where many people still buy gas cooktops even though induction is dominant. It’s not because everyone is busy peppering open flames – it’s because they’re slow to embrace change.

When it comes to heating and cooling, this is a climate problem. Together, they account for nearly half of the energy used in American homes. Heating is a particular challenge as 40% of homes use electricity. The rest burns natural gas, propane or other fossil fuels. When the old furnace dies, the replacement is usually the same. Switching to electric heat pumps will be key to reducing dependence on fossil fuels.

“If your trusted contractor — the one you call to come to your home to find out what’s going on with your system — doesn’t offer a heat pump, you’re not going to buy it, right?” Anuj Khanna, Founder & CEO, Service 1 Financial said.

That gap between what contractors offer and what households need to deliver is part of the reason Khanna founded Service 1 Financial, which it calls “home comfort as a service.” The company is announcing a $5.85 million Series B round today, which includes a $15 million subordinated debt facility, TechCrunch has learned exclusively. Khanna said he expects Series B to close “before the end of the year.” The equity investment was co-led by S2G Ventures, which also led the subordinated debt facility. Other investors were not disclosed.

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