Jobber, "Toast" for home services, raises $100 million
Jobber, which develops software for home services businesses, raised $100 million in Series D funding led by General Atlantic.
Why it matters: The round shows that demand for maintenance and home improvement services — a sector that is mostly mom and pop and mostly offline — remains strong.
Context: Jobber is among a rising class of tech businesses that have supplemented their SaaS revenue with payments and other fintech features.
- Toast introduced payments in 2013 and derived a whopping 83% of its revenue in the third quarter from processing and, to a lesser degree, lending-related services.
- Similar to Toast, Jobber earns fees from payments processing and has lending services via partnership with Stripe.
Of note: Most of Jobber's revenue comes from its software, which helps businesses with scheduling, invoicing and price quoting.
- Payments makes up a smaller percentage, in part because the home services market remains a largely cash-based economy, unlike the restaurant industry.
What they're saying: "We're a SaaS-plus company," says CEO Sam Pillar. "The first thing we are is workflow system of record, and that's really the entry point for all customers to adopt payments after that."
Yes, but: Some wonder whether the post-COVID renovation boom could slow as interest rates rise and the housing market cools, discouraging sellers from remodeling.
- Pillar believes there will be more long-term tailwinds for his company — namely, the country's aging housing stock.
- "Homes are getting older, and people are staying in them longer," he says.