Home care company Honor raises $370M in equity, debt
Honor, a company building software for home care agencies, recently passed a $1.25 valuation with a recent funding round. It raised $70 million in equity, led by Baillie Gifford, and $300 million in debt, led by Perceptive Advisors.
The company plans to invest the funds in its technology and operations, and use it to grow its network of caregivers. CTO and co-founder Sandy Jen said in a news release that Honor is looking to triple the size of its engineering and product teams.
Founded in 2014, San Francisco-based Honor strikes contracts with home care companies to help manage their back office functions, such as administrative work, compliance and recruiting. Last year, it raised a $140 million series D round, which it used to expand its care platform to four new states.
More recently, Honor acquired Home Instead, a large network of home care providers, saying the combined company would represent more than $2.1 billion in revenue.
More investors are turning their attention to the home care industry, looking for new innovations to better care for older adults.
“We believe investing is about backing companies with the potential to deliver transformational growth and better outcomes. With the rapidly growing population of older adults, the home care market provides a unique opportunity to transform an industry that has not yet benefited from technology,” Baillie Gifford Investment Researcher Anika Penn said in a news release.
Other companies have found recent acquisition targets in the industry. For example, Sharecare recently acquired online caregiver marketplace CareLinx for $65 million.
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