Zephyr announced that it has raised over $60 million in new growth capital led by Elda River Capital and The Pritzker Organization (TPO). And Zephyr will use the new funding to support additional home services business acquisitions and continued technical innovation. This latest funding round brings Zephyr’s total funding to nearly $100 million since it launched in November 2022.
Zephyr is a technology-enabled home services platform created with the technician at the center. And Zephyr acquires local service providers in targeted markets, integrates them into a unified technology and productivity platform, and drives growth at those local brands with centralized support in recruiting, training, marketing, operations effectiveness, finance, M&A, etc. By reimagining the technician experience, Zephyr is driving efficiency, retention, and profit for local HVAC brands across the country.
The mechanical (HVAC), electrical, and plumbing market captures over $125 billion spend each year, but the industry is facing a 50% projected technician labor shortage that is set to undermine an already fragmented market. The employee experience in the skilled trades has fallen far behind other industries, which has made it very difficult to attract and retain talent. And as the first technician-centric operating platform, Zephyr is solving this problem by utilizing technology and people management to differentially attract and retain technicians.
Zephyr has closed on 12 acquisitions to date in a handful of target geographies, including the metro areas of Washington, DC; Houston; Palm Beach/South Florida; and Denver. And with the company’s current funding, the team expects to eclipse $100 million of revenue this year and is organically growing over 25%.
Zephyr is headed by CEO and Co-founder Shawn Weidmann, who has over 15 years of executive experience leading and scaling businesses with expansive front-line employee bases, and most recently served as CEO of private-equity backed Spring Education, the largest network of private PS-12 schools in the US. Shawn is joined by Chief Financial Officer Michelle DiPasquale, who has over 20 years of PE-backed CFO experience and deep, multi-site M&A experience; and Chief Product & Technology Officer Kevin McDunn, who has 20+ years experience developing mobile-first productivity applications. Zephyr was built at Juxtapose, a leading creation-oriented investment firm focused on building industry-transforming businesses from the ground up, along with co-founder and current Head of Strategy, Deklan Robinson, who brings significant consumer services and M&A experience from his roles at Harry’s and L Catterton.
With this funding round, representatives from Elda River and TPO will join Zephyr’s board of directors. Michael Morgan, a founding member of Triangle Peak Partners, will also join Zephyr’s board as an observer. Morgan is the former president and current lead director at Kinder Morgan, one of the largest energy infrastructure companies in North America.
With this funding round, Zephyr plans to continue executing on its geographic growth plans in both new and existing markets. Zephyr also plans to continue investing in its proprietary technology platform to enhance its unique and compelling offering to technician talent across the industry.
KEY QUOTES:
“Zephyr is accelerating the digital transformation of home services. The Zephyr platform prioritizes the technician experience to deliver improved customer comfort through superior service, enhanced technician knowledge and the installation of more energy efficient mechanical systems.”
-Michael Dean, Partner at Elda River
“We are excited to partner with the team in accelerating the growth at Zephyr. Zephyr’s differentiated strategy is poised to create a unique platform in home services.”
-Billy Nand, Managing Director at The Pritzker Organization
“We’ve assembled an incredible team in pursuit of our mission to perfect the home services experience. We’re thrilled to use this investment to build on Zephyr’s early momentum and continue driving growth, efficiency and success in the industry – while ensuring technicians are at the core of everything we do.”
-Shawn Weidmann
“We are proud of everything Zephyr and its talented leadership team has already accomplished. We welcome Elda River and TPO to the company, and are excited for Zephyr’s next chapter of growth.”
-Geoff Miller, Partner at Juxtapose
