BRKZ, a construction tech startup, has successfully raised $8 million in a Series A funding round. This funding will be used to expand in Saudi Arabia and the broader Middle East and North Africa (MENA). Beco Capital and 9900 Capital led the round, which also saw participation from Wa’ed Ventures, a venture of Aramco, Knollwood Investment Advisory, RZM Investment, and MISY Ventures.
The $8 million funds add to the $5.55 million seed funding the company previously raised, bringing BRKZ’s total funding to $13.55 million.
Founded in Riyadh in 2022 by Ibrahim Manna, BRKZ aims to tackle various issues in the region’s construction industry, such as physical travels to suppliers, uncertain quality and pricing, and lengthy delivery times. Their application enables buyers to create and share Requests for Quotation (RFQs) for accurate and competitive pricing. However, direct online purchases are currently not supported.
BRKZ reports that over $170 million in quotations involving around 1,200 products from over 350 suppliers have been processed through their platform. According to the startup, they offer quicker turnaround times for both common and specialized orders compared to traditional procurement methods.
As part of its expansion, BRKZ plans to prioritize same-day or next-day delivery to support contractors buying materials and manufacturers selling their products. In addition, BRKZ plans to branch out into equipment rentals and talent sourcing.
The construction market in the Middle East, where BRKZ operates, is worth billions of dollars, with the market value pegged at $1.9 billion in 2023. In the upcoming year, BRKZ has three focus areas: enhancing its in-house tech capabilities, intensifying its financing solutions, and ensuring robust operations and supplier coverage across all cities in the Kingdom of Saudi Arabia.
BRKZ is also mulling over expanding its platform by investing in key areas and strengthening vertical integration with suppliers for greater supply chain control. Additionally, it is working on a tailored pricing mechanism for its customers.
Interestingly, CutStruct, a Nigerian construction procurement platform, recently secured a $600k pre-seed round, underlining the growing focus towards addressing procurement challenges in the construction industry.
