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Team management application Homebase receives US$60 million in Series D financing, giving small and medium-sized enterprises “superpowers”

Homebase founder and CEO John Waldmann insists that while there are countless tech companies offering HR technology to small and medium-sized businesses, most of them are geared toward “professionals sitting at a desk in some capacity.”

Homebase is HR software for the two-thirds of the U.S. small and medium-sized business workforce who hold hourly jobs that require real-time work. Homebase recently closed a $60 million Series D round after attracting more than 100,000 small businesses as customers and covering more than 2 million employees. L Catterton Growth led the round, with participation from Emerson Collective. The round also includes existing investors Notable Capital, Bain Capital Ventures, Khosla Ventures, Cowboy Ventures and PLUS Capital.

Homebase provides payroll, shift scheduling, timesheets, recruiting and onboarding, communications and HR compliance services.

“It’s really difficult to raise capital right now, and the fact that they’re raising it through a top private equity firm like L Catterton Growth speaks volumes about their team and performance,” he said. Jeff Richards, investor and managing partner of Notable Capital (formerly GGV Capital).

“Hourly workers have a lot of the same desire for flexibility and certainty, but it manifests itself in completely different ways, and that’s always been core to our mission,” Waldman said.

Richards agrees. He said SME technology targeting frontline or hourly workers has not received the attention it deserves, even though it could impact more than 55% of the workforce. He also said that artificial intelligence will be a major enabler for small businesses, with companies like Homebase enabling them to “build amazing businesses.”

Despite the enthusiasm of its founders and investors, Homebase isn’t the only company serving the hourly market. Others include Workstream, which builds mobile-first recruiting and onboarding tools, rewards platform Salt Labs and shift pay tool Clair. Still, Richards attests to Homebase’s growth being impressive.

“Homebase has more than 2 million employees, or more than 2% of the workforce, which is impressive for a private company,” Richards said. “If the numbers continue to grow, it could become an important company from a technological and economic perspective.”

TechCrunch last reported on Homebase in 2021, when the company raised $71 million. Since then, the company has moved into other financial services products and AI enhancements, such as improving its automated payroll capabilities. It also works on automated ticket management.

This round of financing provides Homebase with a total of $169 million in venture capital. In 2021, sources told TechCrunch’s Ingrid Lunden that the company was valued at between $500 million and $600 million. Waldman declined to confirm this or provide an updated valuation, saying only that this was not a downside round.

In addition to its R&D investments, Homebase made some additional changes earlier this year, appointing Philip Moon as its new chief financial officer. Moon previously held strategic finance roles at companies including Square and Grove Collective. Company co-founder and chief operating officer Rush Patel also added the title of chief revenue officer.

“We’re using technology to give workers superpowers and, in effect, make jobs more humane, not less,” Waldman said. “There’s so much data showing how important good jobs are to the health of communities. Small Businesses have always provided these, and to me, that’s why our mission is so important, to make these jobs better.”

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