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Service 1st Financial Raises $20 Million to Drive Decarbonization in the Home Comfort Space
News provided byService 1st Financial
Nov 17, 2022, 8:07 AM ET
Enhanced Financial Resources to Fuel Expansion of Industry Leading Home Comfort-as-a-Service Program, Increasing Accessibility to Energy-Efficient Home Comfort
BETHESDA, Md., Nov. 17, 2022 /PRNewswire/ -- Service 1st Financial, LLC ("Service 1st" or the "Company"), a leading financial technology, innovation, and training company serving residential home service contractors, announced today the initial close of its Series B funding co-led by S2G Ventures. The Company simultaneously closed on a subordinated debt facility also led by S2G Ventures. In total, Service 1st secured new capital commitments of over $20 million. In 2019, Service 1st was incubated by Founder & CEO, Anuj Khanna, and Thayer Street Partners with the goal of transforming the way home comfort is purchased and sold in the United States.
With heating, cooling, and plumbing system replacements continually rising in cost, Service 1st's Premier Program® offers homeowners a worry-free service to replace and upgrade their home comfort systems. For a predictable, low monthly payment, homeowners receive the latest energy-efficient equipment, while eliminating the common pain points associated with owning, maintaining, and repairing such systems. The Premier Program® aligns with the Company's commitment to advancing sustainability by fostering more rapid replacement of older, inefficient systems, incentivizing consumers to opt for high-efficiency systems and ensuring that such systems are properly maintained.
The Company has formed strategic partnerships with leading, sustainability-focused HVAC and plumbing original equipment manufacturers (OEMs), reputable contractor success groups and best practice training organizations, as well as top-tier home services contractors who play an essential role in driving accessibility to climate-smart, energy-efficient home comfort solutions.
"Advancing sustainability in the home comfort sector requires both new technologies and new business models that can deploy these technologies at scale. While the vast majority of sector resources are dedicated to technological innovation, Service 1st is addressing the need to catalyze business model innovation to make these technologies more widely available for consumer use," said Anuj Khanna, Founder and CEO of Service 1st. "We have established ourselves as the only independent provider of comprehensive residential Home Comfort-as-a-Service leasing programs in the market and look forward to playing our part in helping to decarbonize the home comfort industry in the years to come."
Service 1st will leverage this funding to rapidly scale the Company through geographic expansion domestically, new product innovation, and investments in industry-leading sales training. In addition, the Company intends to develop and deploy technology-based tools to improve customers' home comfort user experience and equip contractors to sell the Premier Program® through new channels, including, but not limited to, utility partnerships which can drive greater access for homeowners.
The recent passing of the Inflation Reduction Act also provides the Company the opportunity to promote, alone or in conjunction with its OEM partners, the selection of high-efficiency heat pump technology products by consumers. Today, more than 30 percent of Service 1st's Premier Program® portfolio is comprised of electrified heat pumps, well above the industry average.
"S2G Ventures' investment in Service 1st reflects our belief that a shift to a service-based consumption model is a critical step in advancing sustainability within the home comfort industry," said Andrea Woodside, Vice President, Real Assets at S2G Ventures. "Service 1st is effectively meeting the need for transformative business models that make energy-efficient products more accessible, and we look forward to partnering with them to continue scaling their business."
To learn more about Service 1st and its Premier Program®, please visit: https://www.service1stfinancial.com/
Based in Bethesda, Maryland, Service 1st Financial is a leading financial technology, innovation, and training company serving residential home service contractors in the United States. The Premier Program® is offered through independent contractors on a full portfolio of home comfort products, including HVAC systems, IAQ products, tank and tankless water heaters, water purification systems, and standby generators. Service 1st is the only independent provider of comprehensive worry-free home comfort programs in the industry. Learn more at: www.worryfreehomecomfort.com.
S2G Ventures, the direct investment team of Builders Vision, partners with entrepreneurs who are working on solutions to some of the world's greatest challenges across the food, agriculture, oceans, and clean energy markets. We provide capital, mentorship, and value-added resources to companies pursuing innovative market-based solutions that generate positive social, environmental, and financial returns. We provide our partners with flexible capital solutions that can range from seed and venture funding through growth equity to debt and infrastructure financing. For more information about S2G, visit s2gventures.com, tune-in to our podcast, or connect with us on LinkedIn.
Thayer Street Partners is a boutique private investment firm based in New York City, focused on opportunistic investments in recurring revenue businesses operating in the financial services, business services, and real estate services sectors. Thayer Street provides customized capital solutions and partners with management teams to help drive growth of their businesses. For more information, please visit www.thayerstreet.com.
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SOURCE Service 1st Financial