Service 1st Financial sells ‘home comfort as a service,’ gets $20M in Series B funding, debt • TechCrunch

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

When it comes to heating and cooling, that’s a problem for the climate. Together, they account for about half of all energy use in American homes. Heating is a particular challenge as only 40% of homes use electricity; the rest burn natural gas, propane or some other fossil fuel. When the old furnace is dying, its replacement is usually more of the same. To reduce reliance on fossil fuels, switching to electric heat pumps will be key.

“If your trusted contractor, who you call to come to your house and help you decide what to do with your system, doesn’t offer a heat pump, you’re just not going to buy one, are you?” said Anuj Khanna, founder and CEO of Service 1st Financial.

That gap between what contractors offer and what it takes to electrify homes 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 credit facility, TechCrunch has learned exclusively. Khanna said he expects Serie B to close “before the end of the year.” The equity investment was co-led by S2G Ventures, which also led the subordinated debt facility. Other investors were not disclosed.

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