Homex Raises $90M with Alexa AI Team Expertise

HomeX Secures $90 Million in Funding to Revolutionize Home Services

HomeX, a platform connecting homeowners with service professionals, has successfully completed a funding round, raising $90 million. The investment was spearheaded by New Mountain Capital.

Investment Details and Company Background

New Mountain Capital, a New York-based firm managing over $30 billion in assets, was the sole institutional investor in this financing round, joined by contributions from company executives. Prior to this, HomeX operated on a bootstrapped model until securing a debt financing exceeding $50 million in 2019.

Established in 2017 and headquartered in Chicago, HomeX is dedicated to significantly improving the home services sector. The company facilitates connections between homeowners and skilled service workers, utilizing both virtual and in-person interactions.

The Team Behind the Innovation

A key figure at HomeX is Simon Weaver, the company’s CTO. He previously played a crucial role in the development of Evi, an early AI-powered virtual assistant. Evi was later acquired by Amazon in 2012 and formed the technological foundation for Alexa.

Leveraging Artificial Intelligence for Efficient Service

HomeX employs artificial intelligence to diagnose home maintenance issues remotely, even before a technician visits the property. This proactive approach aims to expedite problem resolution by ensuring technicians arrive equipped with the necessary tools and parts.

“We are generating machine-driven content to deliver tailored solutions for individual homeowner problems,” explained Vincent Payen, co-founder and president. “The application of AI in understanding symptoms, formulating relevant questions, and arriving at a diagnosis and resolution represents a significant advancement, enabling capabilities that were unattainable just a few years ago.”

Addressing Industry Fragmentation and Labor Shortages

Michael Werner, founder and CEO, brings extensive experience from the $500 billion home services industry – his family founded Werner Ladders. He observed significant fragmentation within the sector and a growing imbalance between service demand and the availability of qualified contractors.

HomeX Remote Assist: A Rapidly Growing Service

HomeX Remote Assist provides a virtual connection between homeowners and licensed HomeX technicians via phone, video, or chat. This service allows for remote diagnosis and repair of common home issues and has experienced over 400% growth in under a year.

The company also reported a fivefold increase in the number of contractors on its platform last year, although specific revenue figures were not disclosed.

Transforming the Home Maintenance Experience

“We are simplifying home maintenance for homeowners,” stated Werner. “Simultaneously, we are committed to supporting contractor success. Much like telemedicine has reshaped healthcare delivery, HomeX Remote Assist is poised to transform the experience of maintaining your home.”

Expanding into the B2B Market

HomeX is also experiencing rapid growth in its business-to-business (B2B) offerings. Home warranty and insurance companies are increasingly recognizing the value of remote services in enhancing their operational efficiency, according to Payen.

“We are allocating capital to a pilot program and exploring several business development opportunities in this area,” he added.

Financial Performance and Future Outlook

While not yet profitable as a whole, HomeX’s services division is currently profitable. The platform has served “hundreds of thousands” of clients through unique virtual and in-person appointments in the past year.

Harris Kealey, Managing Director at New Mountain Capital, expressed his firm’s confidence in HomeX’s potential to reshape the home and commercial services industries. “The market is substantial, and the need for innovation is significant,” he stated.

Competitive Landscape

Thumbtack, another player in the home services market, has also expanded into video home checkups. They acquired Setter in December, a company specializing in video-based home assessments and personalized repair plans.

Despite facing challenges, including layoffs of 250 employees in March 2020 due to market declines, Thumbtack CEO Marco Zappacosta noted a “renewed focus on the home and an acceleration of digital adoption” in recent times.