Buildxact raises $18.5 million in Series A

Construction tech company company Buildxact has closed its $18.5 million oversubscribed Series A funding round bringing its valuation to $125 million.

The round included lead investor Regal Funds Management as well as other key investors including Possible Ventures, Shearwater Capital, Ophir Asset Management, Washington H, Soul Pattinson, SecondQuarter Ventures and Thorney Opportunities.

Buildxact is set to direct the capital raised to support its global expansion in ANZ, US and Canada, and expects to launch in the UK this quarter. It will also inject the funds into product innovation.

According to David Murray, CEO of Buildxact, “Our company is solving fundamental problems for the residential construction industry, and through this capital, we will be able to further expand our global operations, becoming the clear leader in software solutions for the builder and their engagement with suppliers.”

The last year of growth as seen more than 100 percent year on year Annual Reccuring Revenue (ARR), alongside Buildxact subscribers growing by 81 percent.

The construction market is a laggard when it comes to digital transformation, and Jessica Farr-Jones, portfolio manager at Regal Funds Management describes inefficiencies in the market when it comes to project management.

“Buildxact addresses a large but underserved market that typically relies on inefficient applications such as Word, Excel and email to estimate costs and manage projects. Diligence calls with both builders and building materials’ suppliers revealed a significant degree of ‘customer love’, citing Buildxact as the only cloud-based job estimating and job management solution,” she said.

“With an incredibly strong founder-led management team, we believe the company is uniquely placed to become a global leader in this market.”

David Murray, CEO, Buildxact

With subscribers in six countries and 20 percent of revenue driven by foreign markets, the organisation expects foreign customers and revenue to overtake the Australian market by 2024.

According to Chris Hitchen, Managing Partner at Possible Ventures, “From our first interactions with Buildxact, we knew they had a remarkable mix of deep industry knowledge, and proven experience developing large-scale software companies.”

“Buildxact is the perfect example of simple-to-use software taking an industry from the dark ages of spreadsheets, to the speed and convenience of the cloud. Building on their considerable traction in Australia, we are excited to support their global expansion.”