Ecuador-based software-as-a-service marketplace, Construex, has recently secured $4.6 million in seed funding to facilitate its expansion in Latin America. The funding round was co-led by Zacua Ventures and Fifth Wall, with participation from ABSeed and Terracotta Ventures. Construex, founded by brothers Roberto and Nicolás Arroyo in 2019, aims to digitize and streamline the construction industry in Latin America, estimated to be valued at over $520 billion.
Key Takeaway
Construex, a construction marketplace based in Ecuador, raised $4.6 million in seed funding to further expand its platform in Latin America. The company aims to address the challenges faced by the construction industry in the region, such as the lack of information and inefficient supply chain processes. Construex offers a comprehensive platform that connects construction product suppliers with customers, providing a digitized solution for the industry.
Addressing the Supply Chain in Latin America
The Latin American construction industry faces various challenges, with one major issue being a lack of information. Only 4% of construction suppliers in the region are tech-enabled, leaving developers and customers to resort to traditional communication methods to procure construction materials and services. Construex aims to bridge this gap by connecting construction product suppliers to customers through its platform.
Digital Solutions for the Construction Industry
Construex offers a comprehensive platform that allows registered suppliers to showcase their products and services. The platform also incorporates features such as virtual reality showrooms and integration with popular messaging app WhatsApp. In addition to offering a free version of its platform, Construex generates revenue through transactions made on the platform and offers additional services through a subscription model.
Impressive Growth and Expansion Plans
Since its inception, Construex has achieved significant growth and profitability. The company initially bootstrapped for nearly four years before expanding into Chile, Guatemala, and Argentina, where it doubled its revenue compared to the previous year. Building on this success, Construex recently opened an office in Mexico City and plans to further expand into Mexico and other Spanish-speaking countries, while also targeting Brazil. The company aims to bring one million suppliers onto its platform and expects to quadruple its revenue in the next year.
The Importance of Venture Capital
The recent funding round, led by Zacua Ventures and Fifth Wall, highlights the growing interest of venture capital funds in supporting innovative solutions for the construction industry. For ABSeed, this investment marks its first outside of Brazil, demonstrating the potential of Construex’s platform in the Latin American market. The partnership between ABSeed and Terracotta Ventures aims to provide Construex with the necessary resources to bridge the gap between the construction industry and tech-enabled solutions.
The funding secured by Construex not only validates the company’s vision but also enables it to invest in further technological advancements and expand its presence across Latin America. As the construction industry in the region embraces digital transformation, Construex is well-positioned to drive innovation and efficiency in the sector.
