Kindly Care Secures $5.4M Series A Funding, Leveraging Internet+ to Reduce Elder Care Costs by 30%

VCBeat (WeChat ID: vcbeat) has learned that on July 17, Kindly Care, a company specializing in non-medical in-home care for the elderly, announced the completion of a $5.4 million Series A financing round. The round was led by new investor Javelin Venture Partners, with participation from existing investors Jackson Square Ventures and MHS Capital.

This latest round of financing has brought the total funding for the San Francisco-based startup to $9.5 million. In 2016, the company secured $3.1 million in seed funding.

Igor Lebovic, Co-founder and CEO of Kindly Care, explained via email that the new funding will be used to facilitate business expansion and hire more caregivers.

According to available information, Kindly Care was founded in 2014 and is a leading elderly care platform in the United States. It matches seniors in need of care with suitable caregivers and assists families in managing those caregivers. The Kindly Care mobile app enables users to manage caregivers, monitor care tasks, and process payments.

(Source: Kindly Care official website; compiled by VCBeat)

Traditional agencies outsource all aspects of caregiving, including the selection, training, scheduling, and supervision of caregivers. While this reduces the workload for families, it comes at a significant cost: employers must pay for the time of both the caregiver and their supervisor, with hourly rates reaching $25–$35 per hour, depending on the location and agency pricing.

Through Kindly Care, employers can directly hire the caregivers they need, so employers only pay for the caregivers' time (costs are reduced by approximately 30% compared to traditional agencies).

Meanwhile, the hourly rate for caregivers is determined by the employer. The employer proposes an expected price range to the agency, and Kindly Care recommends local caregivers who work within that range. The employer then negotiates the final hourly rate directly with the selected caregiver.

Employer taxes typically amount to 10–12% of the hourly rate in caregiver negotiations.

Unlike traditional agencies that match and introduce caregivers based on set criteria, Kindly Care’s platform allows employers to conduct background checks on caregivers before hiring them for elderly care.

The first step for families is to initiate a matching request. While this can be done on the Kindly Care website, it is highly recommended to call the company’s care advisors instead, as they can take individual care needs into account and match families with the most suitable candidates.

After the initial matching, families can review each caregiver’s profile (including a personal video) to gain a preliminary understanding and decide whether to proceed with an interview. Subsequently, families may conduct interviews in person or by phone, and both parties may mutually agree to work together on a voluntary basis.

Most caregivers at Kindly Care have previously worked in traditional care facilities. It is common in this industry for caregivers to work for multiple agencies simultaneously. As most caregivers prefer private clients, which allow them to earn higher compensation, Kindly Care has amassed a large pool of experienced and well-trained caregivers.

(Source: Kindly Care official website; compiled by VCBeat)

Once the employer and caregiver establish a care relationship, Kindly Care handles all other matters, saving employers significant time.

(Source: Kindly Care official website; compiled by VCBeat)

Lebovic discussed the reasons that prompted him to establish the company. He found it difficult to communicate with his parents’ caregivers due to distance issues. After learning that some of his friends had similar experiences, he began seeking a solution and gradually started founding Kindly Care, an elderly care agency.

“When we embarked on this journey four years ago, we were confident that millions of families were paying their caregivers under the table, and that they would be willing to formalize these relationships if provided with an easy-to-use framework to ensure compliance with all labor and tax regulations,” said Igor Lebovic, Co-founder and CEO. “We are delighted to see our product resonate with families and caregivers.”

In the United States, privately hiring caregivers is largely illegal; however, due to the high costs of traditional care institutions, many families opt for private hires to save on expenses. Caregivers found through such channels not only lack verified credentials but also present significant uncertainty in the quality of care provided.

Kindly Care bridges the gap between privately hired caregivers and traditional agencies by conducting rigorous background checks on care professionals in the market. This allows families to hire caregivers with peace of mind while ensuring compliance with legal regulations.

After four years of development, Kindly Care has expanded its operations to 10 U.S. states, boasting a network of over 100,000 caregivers and aggregating millions of precisely targeted elderly users.

According to data from the U.S. Census Bureau, when the last of the baby boomers reach age 65 in 2029, the elderly population will account for more than 20% of the total U.S. population, nearing 60 million people. According to data from the U.S. Department of Health and Human Services, approximately 70% of individuals aged 65 and older (including many with cognitive impairments) will require some form of long-term care.

Undoubtedly, the vast market for “Internet + Home Care” is a lucrative prize that innovative entrepreneurs are vying to capture; however, actual operations have revealed numerous challenges. Last year, a company named Home Hero was forced to exit the sector, while another, CareLinx, was acquired by a larger corporation in September. A third company, London-based Cera, is currently facing allegations of fabricating online reviews and misrepresenting its partnerships.

In this context, Kindly Care needs to strictly control the screening of caregivers and monitor service quality.

Lebovic pointed out that, in addition to undergoing the agency’s own screening, every caregiver candidate must be subject to extensive vetting, including federal, state, and local background checks as well as driver’s license verification.

“I hope Kindly Care becomes the first care platform I feel confident entrusting my family to,” said Erik Fantasia, Co-Founder and Chief Technology Officer.