Venture Capital: Home Management Platform Thumbtack Raises $275M
The round valued Thumbtack at $3.2 billion.
Home management platform Thumbtack enables its millions of customers to find and hire small businesses and local professionals for virtually any home-related task. It announced Tuesday that, “on the heels of incredible growth,” it had raised a $275 million investment led by Qatar Investment Authority (QIA) and joined by Blackstone Alternative Asset Management (BAAM) as well as G Squared. Existing investors Baillie Gifford, CapitalG, Founders Circle Capital, Sequoia Capital and Tiger Global also participated. (BusinessWire)
Over the past year, Thumbtack has grown revenue more than 50% and is estimated to generate more than $2 billion in revenue for local service providers this year.
Home services industry has vast scope
“Technology investment has poured into the process of buying and selling a home, yet once homeowners get the keys to their castle, they’re left on their own,” wrote co-founder and CEO Marco Zappacosta in a blog announcing the funding. “In an age where everything else is more connected, your home and the home services industry that serves it — a massive $500 billion sector — is still in its digital infancy.”
To tackle the problem, Thumbtack is the only platform homeowners need to maintain their most valuable investment – their home. Homeowners can instantly book the right skilled professionals from plumbers and painters to landscapers and contractors.
Nearly 90% of customers receive a response from a service provider that they choose, says the firm.
Use of funds
Thumbtack will use the new funds to accelerate its growth trajectory, accelerate platform innovation and development and push for greater adoption of its services.
“Thumbtack has an incredible opportunity to bring the $500 billion home services market into the 21st century,” Zappacosta said. “We will create a new era of home management — and deliver the peace of mind every homeowner needs.”
“As we double down on home services, we have many opportunities to invest and create value on our path to becoming a public company,” added Chief Financial Officer Larry Roseman.
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