Cactus, the AI-powered copilot designed to transform home service businesses, has successfully raised $7 million in seed funding. The round saw participation from Wellington Management, Y Combinator, Pelion Venture Partners, Rebel Fund, and other strategic investors. This funding will accelerate Cactus’ mission to modernize one of the last largely offline industries home services.
By introducing conversational AI, Cactus empowers professionals in HVAC, plumbing, electrical, and contracting sectors to automate customer communication. Traditionally, small home service teams manage calls, scheduling, and follow-ups manually. However, Cactus offers them an always-on AI copilot that handles end-to-end communication, increasing efficiency and capacity without the need to hire additional staff.
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Erin Smith, co-owner of Blue Best Plumbing, Heating & Air Generators in Salt Lake City, Utah, shared the impact firsthand: “It’s never fun to call a plumber, but hearing how natural and friendly the AI sounds has been amazing. Our customers often don’t realize they’re not speaking with a real person.”
The $657 billion U.S. home services market still heavily relies on phone calls and spreadsheets, with nearly 30% of inquiries arriving after business hours. To address this gap, Cactus operates as a 24/7 AI-driven platform that answers, qualifies, books, and follows up with customers automatically. As a result, every inquiry gets immediate attention, ensuring no potential lead is missed.
“Even with modern CRMs, most home service businesses lose jobs at the first touchpoint,” explained Ajith Govind, co-founder and CEO of Cactus. “Cactus ensures every inquiry gets handled instantly and professionally, helping small teams perform like enterprise operations.”
Unlike traditional AI call-answering tools, Cactus offers a robust aftercare automation system that follows up through phone, email, and text. This functionality allows service providers to rebook jobs, send timely reminders, and nurture long-term relationships creating predictable, subscription-like revenue streams.
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“AI isn’t valuable unless it solves a real problem,” said Avinash Joshi, co-founder and CTO. “Every line of code is built to remove friction so business owners can focus on growth, not admin.”
Founded by two-time Y Combinator alumni Govind and Joshi, Cactus has quickly gained traction among home service professionals eager for scalable and cost-effective communication solutions. Early adopters report double the booking rates and higher customer satisfaction all achieved without expanding their workforce.
With its latest funding, Cactus plans to expand its platform and strengthen its go-to-market presence across the U.S. “We see tremendous opportunity to introduce AI infrastructure to a multibillion-dollar market that is largely underserved by modern technology,” said Sasha McKenzie, Deal Lead at Wellington Access Ventures. “Cactus is at the forefront of this transformation, turning routine business operations into fully automated, revenue-generating systems.”
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