Cactus Secures $7 Million Seed Funding to Automate Home Services with AI Copilot

Cactus, an AI copilot designed for home service businesses, has successfully closed a $7 million seed funding round. The investment was led by Wellington Management and Y Combinator, with significant participation from Pelion Venture Partners, Rebel Fund, and a consortium of other strategic investors and angels. This capital injection aims to fuel the company's platform expansion and accelerate its go-to-market strategy across the United States.

The company's co-founder and CEO, Ajith Govind Satheesh, announced the achievement on social media, stating, "Today we’re excited to announce we’ve raised a $7M seed round led by Wellington Management, with participation from Y Combinator, Rebel Fund, Pelion Venture Partners and multiple incredible investors and angels who share our vision for the future of customer experience." He highlighted the inspiration behind Cactus, noting that he and co-founder Avinash Joshi observed home service businesses struggling with "capacity issues" that led to lost customers due to an inability to answer calls quickly or follow up effectively.

Cactus addresses these challenges by providing an always-on AI assistant that integrates with existing business tools. This platform automates critical customer interactions, including answering calls, booking jobs, qualifying leads, and personalizing every interaction by learning from real customer data. The company's mission is to make "world-class customer experience infrastructure accessible to every home service business from local HVAC companies to national brands."

The U.S. home services market, valued at $657 billion, remains largely reliant on manual processes, with up to 30% of customer inquiries occurring after hours. Cactus aims to transform this sector by ensuring that no customer inquiry is missed and that routine communications are converted into automated, revenue-driving workflows. Early adopters of the Cactus platform have reported significant improvements, including doubled booking rates and enhanced customer satisfaction, all without the need for additional staffing.

Sasha McKenzie, Deal Lead at Wellington Access Ventures, commented on the investment, stating, "We see tremendous opportunity to introduce AI infrastructure to a multibillion-dollar market that is largely underserved by modern technology." She added that "Cactus is at the forefront of this transformation, turning routine business operations into fully automated, revenue-generating systems." The company anticipates significant developments in 2026 as it continues its growth trajectory.