Cactus Raises $7M Seed Round to Launch AI Copilot for Home Service Businesses

Led by Wellington Management and Y Combinator, Cactus brings 24/7 AI operating system technology to home service businesses to automate customer calls, scheduling, and follow-ups

SAN FRANCISCO, Nov. 5, 2025 /PRNewswire/ -- Cactus, the AI copilot built to power home service businesses, today announced it has raised $7 million in seed funding, backed by Wellington Management, Y Combinator, Pelion Venture Partners, Rebel Fund and additional strategic investors.

Cactus brings conversational AI to one of the last offline industries: home services. From HVAC and plumbing to electrical and contracting, most small teams still juggle calls, scheduling, and follow-ups manually. Cactus gives them an always-on copilot that manages customer communication end-to-end, expanding capacity without additional staff.

"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," said Erin Smith, co-owner of Blue Best Plumbing, Heating & Air Generators in Salt Lake City, Utah.

The $657 billion U.S. home services market remains largely powered by phone calls and spreadsheets, with up to 30% of inquiries arriving after hours. Cactus solves this with a 24/7 AI platform that answers, qualifies, books, and follows up automatically—ensuring every customer gets a response and every opportunity is captured.

"Even with modern CRMs, most home service businesses lose jobs at the first touchpoint," said 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 basic AI call-answering tools, Cactus includes built-in follow-up via phone, email, and text, enabling providers to rebook recurring jobs, send reminders, and nurture repeat business. This "aftercare automation" helps service pros retain customers and build predictable, subscription-like revenue.

"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 founders Govind and Joshi, Cactus has seen rapid adoption among home service professionals seeking scalable, affordable ways to handle customer communication. Early users report booking rates doubling and customer satisfaction improving—all without additional staff. The new funding will support platform expansion and go-to-market growth 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, Wellington Access Ventures. "Cactus is at the forefront of this transformation, turning routine business operations into fully automated, revenue-generating systems."

About Cactus
Cactus is an AI copilot built for home service businesses. The platform uses conversational AI to answer calls, qualify customers, book jobs, and follow-up automatically, helping small business owners capture more leads and retain more clients, all without hiring additional staff. Cactus is redefining how service businesses operate, empowering owners to focus on their craft while AI handles the rest. To learn more, visit www.oncactus.com.

SOURCE Cactus