Slowly but surely, contractors are digitizing their processes and payment flows. And now, with the help of Hearth, they can also offer convenient loans to customers on their phones.
The Austin, Texas-based company founded in 2016 by CEO Anthony Ghosn and Nikhil Pai, is a marketplace that lets “contractors quote monthly payments in real-time as opposed to one lump cost,” per the company’s release.
Hearth is currently used by more than 10,000 contractors and offers financing solutions, payment collections, invoicing, insurance and more. It markets its product as a way for contractors to spend more time on their craft and less time managing their business.
The funding round was led by Human Capital, with additional investors in 8VC, Suro Capital, Jay Levine, Barry Sternlicht and The Chainsmokers. The Series B funding round follows a $16.1 million Series A round in May 2020, led by 8VC and also included Human Capital, Colchis Capital Management, and Plug and Play.
Co-founder Ghosn, in a prepared stated, said that Hearth was the first in “the market to enable the SMB segment with financing” options, a key growth area in fintech. The additional capital will be used to expand features and resources for customers.
Hearth, with offices in Austin and San Francisco, plans to use the funding to double its team size from 100 to 200 by the end of the year, according to the company’s press release. The company’s current financing and digital invoicing solution, Hearth Pay, is intended to help serve an industry that generates over $100 billion in annual revenue. Ghosn told BuiltIn Austin that the funding will be specifically be used to provide contractors with credit cards, bank accounts and contract generation features within the next year.
The company has raised $51 million in funding to date, including a $8.7 million seed round with funding by 8VC, Goldcrest Capital, Founders Fund and AAF Management.