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Homebase Raises $6 Million in Funding to Simplify Hourly Work Management for Local Businesses

CryptoCove December 28, 2024

The Challenges of Employee Scheduling

Local stores and restaurants face a multitude of challenges outside their doors, from rising rents to online competitors. However, one task that should be relatively straightforward – scheduling employees’ shifts and breaks – often proves to be a nightmare for business owners. A startup called Homebase has raised $6 million to simplify this process and make hourly work much easier to manage for every business on Main Street.

A Cloud-Based App Built with Local Businesses in Mind

Khosla Ventures led the round, joined by Baseline Ventures and Cowboy Ventures. The company’s cloud-based app was designed specifically for local businesses’ unique needs, offering both a free-to-use version and paid-for premium features. With Homebase, business owners can set schedules for employees, automatically send text reminders about upcoming shifts, track breaks and overtime hours, and more.

Automating Time-Consuming Tasks

The app’s primary function is to help business owners avoid unexpected labor costs and stay compliant with labor laws. According to John Waldmann, founder and CEO of Homebase, the app saves small business owners an average of five hours per week on administrative tasks. This is no small feat, considering that these tasks can be a significant drain on resources for local businesses.

A Bright Future Ahead

With the funding, Homebase plans to focus on sales, marketing, and hiring while continuing to develop features that will solve different schedule-related problems for small businesses. One upcoming feature aims to take employees’ personal preferences into consideration when scheduling shifts. This might seem like a trivial matter, but it can contribute significantly to employee happiness.

Rapid Customer Adoption

To date, Homebase has recorded 20 million shifts worked across 50,000 small businesses, with users in every state. The company’s clients are predominantly restaurants (70%) and retailers (25%), with most users owning and operating one storefront. However, some have local chains with dozens of locations.

Joining the Board

With the Series A round, Khosla Ventures’ investment partner Keith Rabois has joined Homebase’s board. Previously an executive at PayPal and Square, and a board member at Yelp, Rabois invested in Homebase due to its early and rapid customer adoption rates. He believes that small businesses may not pay much per user, but at scale, they are worth a significant amount.

A Growing Team

Homebase employs around 22 full-time staff members, with office headquarters in San Francisco and an outpost in Houston, Texas. Interestingly, every employee has previously held a retail or restaurant job, according to Waldmann.

Total Capital Raised

The Series A round brings Homebase’s total capital raised to $8 million after an earlier seed round of $2 million.

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