Daijiworld Media Network - San Francisco
San Francisco, Aug 26: While much of Silicon Valley focuses on generative art and general-purpose chatbots, Indian-origin engineer Apurva Shrivastava and his co-founder Tyson Chen have taken a different route. By targeting the blue-collar home services industry, their AI startup Avoca has achieved a $1 billion valuation following a successful $125 million funding round.
The recent investment was led by Meritech Capital and General Catalyst, with active participation from Kleiner Perkins.
From restaurants to home services
A graduate of the Massachusetts Institute of Technology (MIT), Shrivastava initially developed AI answering services for the restaurant industry. However, he and Chen quickly realised the massive financial disparity between missed calls in different sectors. While a missed restaurant reservation might cost a business $40, a missed call for an emergency HVAC installation could cost a contractor upwards of $40,000.
This insight was deeply personal for Shrivastava, a first-generation Indian-American who grew up in Michigan helping manage phone calls for his family's business. He understood firsthand that in trades like plumbing, electrical work, and roofing, a missed call translates directly to a lost contract.
Bridging the gap with vertical AI
Unlike tech firms that aim to automate desk jobs, Avoca is built specifically for the main characters of the physical economy.
Key features of Avoca’s AI agents include answering customer calls within seconds 24/7, utilizing natural, human-sounding voice technology, integrating deeply with industry-specific software, booking appointments directly into a company's real-time calendar, and proactively following up on older, unsigned estimates.
Explosive market response
The startup's focus on technology built for specific industries has yielded massive growth within the $1 trillion home services economy. Avoca currently serves over 800 customers, counting national brands like 1-800-GOT-JUNK? and Goettl Air Conditioning among its clientele.
After surpassing eight figures in annual recurring revenue in 2025, the company is now on track to book nearly $1 billion in jobs for its clients this year, proving the immense financial value of ensuring no customer call goes unanswered.