Munich-based startup Comstruct has raised €12.5 million (approximately $13 million) in a funding round led by GV and 20VC, with participation from existing investors Booom and Puzzle Ventures. The company aims to modernize the procurement process for construction materials through its software platform.
Challenges in Construction Procurement
In large-scale construction projects, ordering materials often involves manual processes such as phone calls, physical delivery notes, and manual data entry into spreadsheets. This analog approach can lead to inefficiencies and difficulties in reconciling invoices and generating comprehensive reports.
Comstruct’s Solution
Comstruct offers a procurement platform that digitizes the ordering process for construction materials. By collaborating with general contractors, the platform integrates data from various suppliers, regardless of their preferred data-sharing methods. This integration is facilitated through machine learning, enabling the platform to incorporate information from suppliers via Electronic Data Interchange (EDI), email, or customer portals. Over the past two years, Comstruct has integrated 800 material suppliers into its system.
Platform Features
The platform includes modules for ordering, digital delivery receipts, invoice reconciliation, and Environmental, Social, and Governance (ESG) reporting. Comstruct operates on a usage-based pricing model, charging per document processed. With the implementation of the Corporate Sustainability Reporting Directive in Europe, contractors are required to report material usage in construction projects. Comstruct’s platform assists in tracking materials such as concrete, providing contractors with necessary data for compliance.
Market Position and Expansion
Comstruct competes with companies like Kojo in the U.S. and Qflow in the U.K., each with distinct focuses within the construction procurement space. Initially operating in Switzerland, Comstruct has achieved significant coverage of the materials industry there and is expanding into Germany, Austria, and other European countries. The platform has been utilized in projects including tunnel constructions, highway developments in Stockholm, and a major train project in Munich. Notably, the Gotthard Tunnel project in Switzerland uses Comstruct to manage delivery notes and link them to invoices.
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By Proptechbuzz
By Ravi Kumar
