Service 1st Financial sells ‘home comfort as a service’, secures $20M Series B financing, Debt TechCrunch

Let’s face it: Most people are not early adopters, especially when it comes to their homes. Take the kitchen, for example, where despite the superiority of induction, many people still buy gas stoves. Not because everyone is busy roasting peppers over an open flame — it’s because they’re slow to embrace changes.

When it comes to heating and cooling, this is an issue for the climate. Together, they account for approx half of the total energy use in US homes. Heating is a special challenge only since then 40% of homes Using electricity, the rest burns natural gas, propane, or some fossil fuels. When an old furnace is dying, replacing it is usually more of the same. To reduce dependence on fossil fuels, switching to electric heat pumps will be key.

“If a trusted contractor—you call to come to your house to help figure out what to do with your system—don’t offer a heat pump, you wouldn’t buy one, would you?” said Anuj Khanna, Founder and CEO First Financial Service.

This gap between what contractors provide and what is required to power homes with electricity is part of the reason Khanna founded Service 1st Financial, which offers what he calls “home comfort as a service.” The company is announcing a $5.85 million Series B today that includes a $15 million subordinated debt facility, TechCrunch exclusively learned. Khanna said he expects Series B to be over “before the end of the year”. He co-led the equity investment with S2G Ventures, which also led the subordinated debt facility. Other investors were not disclosed.

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