Cactus Secures $7M Seed Funding to Revolutionize Home Service Industry with AI

On November 5, 2025, Cactus proudly announced that it has successfully raised $7 million in seed funding, a significant milestone aimed at transforming the home service landscape with cutting-edge artificial intelligence (AI). The funding round was led by industry giants Wellington Management and Y Combinator, along with support from Pelion Venture Partners, Rebel Fund, and other strategic investors.

Cactus’s mission is clear: to introduce a conversational AI platform that empowers home service businesses, which have historically relied heavily on manual procedures for customer engagement. Covering essential services such as plumbing, HVAC, and electrical work, Cactus provides these small companies with an always-on AI copilot that streamlines communication with customers, handles scheduling, and manages follow-ups without the need for additional staff.

Erin Smith, co-owner of Blue Best Plumbing, Heating & Air Generators in Salt Lake City, Utah, offered valuable insight into the company's benefits: "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 U.S. home services market, valued at an astonishing $657 billion, is largely dependent on phone calls and manual processes. With up to 30% of inquiries arriving after regular business hours, this dependence often leads to missed opportunities. Cactus aims to change that with a 24/7 AI platform designed to automatically answer, qualify, and book jobs, ensuring prompt responses and capturing every potential client.

Ajith Govind, co-founder and CEO of Cactus, emphasized the importance of first impressions in customer engagement: "Even with modern CRMs, most home service businesses lose jobs at the first touchpoint. Cactus ensures every inquiry gets handled instantly and professionally, helping small teams perform like enterprise operations."

Cactus distinguishes itself from basic AI call-answering systems by providing built-in follow-up mechanisms through phone calls, emails, and text messages. This capability enables home service providers to not only secure new business but also rebook recurring jobs, send timely reminders, and nurture long-term customer relationships. This "aftercare automation" approach empowers service professionals to retain clients and bolster predictable, subscription-like revenue streams.

Avinash Joshi, co-founder and CTO, remarked, "AI isn't valuable unless it solves a real problem. Every line of code is built to remove friction so business owners can focus on growth, not admin."

Having been founded by experienced entrepreneurs Govind and Joshi, both of whom have been through Y Combinator, Cactus has rapidly gained traction among home service professionals seeking scalable and cost-effective solutions for customer communication management. Preliminary reports from early users indicate that the platform has doubled booking rates and improved customer satisfaction, all without necessitating additional staff.

The funds raised in this round of financing will be channeled toward expanding the platform's features and amplifying Cactus's market presence across the United States. "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."

In summary, Cactus is redefining what it means to operate a home service business in the 21st century. Through its innovative AI copilot, the company is not only improving operational efficiency but also enhancing customer experiences. To find out more about Cactus and its pioneering approach to home services, visit www.oncactus.com.