Glendale-based ServiceTitan Inc. has secured $165 million in funding from a venture capital group to build out its home services software firm through acquisitions and moves into new markets.
ServiceTitan says the funding represents the largest software raise in Southern California history for “software as a service,” or sometimes referred to as SaaS. This is a software distribution model in which a third-party provider hosts applications and makes them available to customers over the Internet.
The $165 million venture capital raise is based on a valuation for the company at $1.65 billion, said Connor Theilmann, ServiceTitan’s vice president of business operations. “You could say we sold 10 percent of the company for $165 million, in other words.”
A week ago, ServiceTitan announced its first-ever acquisition: JaRay Software Inc., a Kansas-based business software system for home services.
ServiceTitan was co-founded in June 2012 by Ara Mahdessian and Vahe Kuzoyan. ServiceTitan is a mobile, cloud-based software platform that helps home services companies streamline operations, improve customer service and increase sales.
The Series D funding of $165 million was led by Index Ventures, with participation from Dragoneer Investment Group and T. Rowe Price, and existing investors Battery Ventures, Bessemer Venture Partners and Iconiq Capital.
Nina Achadjian from Index Ventures joined ServiceTitan’s board of directors.
ServiceTitan has raised $161 million from venture firms prior to this latest capital raise – giving it a total of $326 million to date.
Earlier this year, ServiceTitan announced $62 million in Series C funding. The funding round was led by Battery Ventures as part of the Glendale firm’s plan to expand the company through a series of acquisitions. As part of the deal, Bessemer Venture Partners and Iconiq Capital added to their existing investments. Battery Ventures partner Michael Brown joined the company’s board as part of the round.
ServiceTitan plans to use the additional capital of $165 million to expand its home services businesses.
There are more than 45,000 contractors who use ServiceTitan’s software somewhere in the pipeline from the moment a customer places a call to a contractor to payment of the bill. The software does everything from track a contractor’s vehicle when it’s on the way to a job, to find finance for a home emergency repair, like for plumbing or replacing a heater.
“ServiceTitan is the operating system for home services,” said Kuzoyan, ServiceTitan co-founder and president, in a statement. “Our software helps our customers with nearly every workflow in their business, including CRM (customer-relationship management technology), scheduling, dispatch, mobile invoicing, payments, inventory and more.”
Finance reporter Pat Maio can be reached at [email protected] or (323) 556-8329.
