Those expansion plans are built around a substantial infusion of new capital, too. The San Francisco-based Honor announced Tuesday it has raised $140 million in Series D funding, led by Baillie Gifford, plus funds and accounts advised by T. Rowe Price Associates Inc. Rocks Springs also participated in the fundraising round, in addition to existing investors Andreessen Horowitz, Thrive Capital, Prosus Ventures and 8VC.
To date, Honor has raised $255 million since its launch in 2014.
Timing wise, the Series D news comes at a time when home-based care is more important than ever due the COVID-19 virus and all the challenges it presents in terms of facility-based care and senior isolation, co-founder and CEO Seth Sternberg told Home Health Care News.
“We’re in an environment right now where caring for the elderly in their homes is super critical,” Sternberg said. “And caring for the elderly in a completely safe way, with completely consistent protocols and completely consistent standards.”
Originally founded as an on-demand home care company, Honor has since pivoted its business strategy to one based on integrated partnerships with independently owned and operated home care agencies. Through its partnership model, Honor uses its technology infrastructure to take over billing, scheduling, staffing and other back-office functions for a negotiated share of agency revenue.
The startup currently partners with more than 40 home care agencies in six states, serving more than 1,000 total communities. Its “Care Pros” have helped provide more than 5 million hours of care to older adults and other individuals since 2014.
“We believe investing is about identifying companies that can deliver transformational growth on the back of long-term structural changes,” Baillie Gifford’s Anika Penn said in a press release. “Honor has demonstrated their ability to leverage technology to elevate and expand services to older adults who want to remain in their homes, and to improve conditions for home care aides. We are excited to partner with the team as they scale up and drive improvement throughout the ecosystem of this $30 billion industry.”
This is a developing story. Please check back shortly for updates.