← Embedded Finance Index 2026

Hearth

“Can a vertical SaaS platform for trades contractors become the dominant financial OS for America's home improvement SMBs by embedding financing, payments, and insurance into their daily workflow?”

Founded2016
HQAustin, TX
Latest roundSeries B
IndustryVertical SaaS / Construction
The story

Founded in 2016 as a financing marketplace connecting home improvement contractors' customers to lenders via a multi-lender pre-qualification form. Over time expanded the platform to include invoicing, payments (Hearth Pay), contracts, and quoting, evolving from a pure lead-gen/lending connector into a vertical SaaS platform for trades SMBs. The embedded financial services layer — spanning consumer financing, payment collection, and insurance — is now positioned as the monetization engine of the broader workflow platform targeting a $600B home improvement market.

Last 12 months
2025-04
Product timeline
2016
Shogun Enterprises Inc. founded, doing business as Hearth, targeting home improvement contractors with financing solutions.· lending
2021
Launched Hearth Pay, enabling contractors to invoice, track, and collect payments from the mobile app.· banking
2023
Platform expanded to an all-in-one vertical SaaS offering with quoting, contracts, invoicing, financing, and payment collection for trades SMBs.· pivot
2025
Added second-look (subprime) financing to help contractors serve customers with lower credit scores who don't qualify for primary financing.· lending
The stack
4 layers disclosed in Hearth’s embedded-finance stack
Payments / PSP
Stripe
Banking / BaaS
in the full report
Lending
in the full report
Sponsor bank
in the full report
Accounting gap: significant
5 more providers across 3 layers, with confidence-scored evidence and source URLs, are in the Embedded Finance Index report.