Construex, an innovative software-as-a-service marketplace based in Ecuador, has made a significant stride in the construction and design industries by securing $4.6 million in seed funding, according to a recent report by TechCrunch. This round was co-led by Zacua Ventures and Fifth Wall, with additional investments from ABSeed and Terracotta Ventures.
The company, founded in 2019 by brothers Roberto and Nicolás Arroyo, emerged from their extensive experience in their family’s construction business and Roberto’s personal involvement in housing projects in Ecuador. The idea for Construex was born out of the challenges they faced in material procurement and service hiring for housing.
A Digital Solution for an Age-Old Industry
Roberto Arroyo, in his interview with TechCrunch, explained the inception of Construex. “I was having trouble purchasing supplies, so I started talking to my brother, who has been purchasing for the construction company for a long time. We started understanding how to help other developers find a solution, too,” he said.
Construex’s mission is to digitize the construction industry across Latin America, a market valued at over $520 billion. The company actively addresses the industry’s critical issue of information scarcity, where only 4% of construction suppliers are tech-enabled. Construex offers a platform that connects construction product suppliers with customers, eliminating the need for traditional, inefficient sourcing methods.
The platform offers a free version and generates revenue through transactions and additional services via a subscription model. It features over 80,000 registered suppliers and provides a range of products from architecture to engineering to furnishings. The company also offers a robust CRM to suppliers, including virtual reality showrooms and WhatsApp integration.
Since its inception, Construex has expanded into Chile, Guatemala, and Argentina. Initially bootstrapped, the company reached profitability and saw its revenue double compared to 2022.
Expansion and future goals
Construex plans to use this funding to accelerate its expansion into Mexico and other Spanish-speaking countries, while also considering Brazil. The company has already established an office in Mexico City. Construex aims to onboard 1 million suppliers in the coming years and anticipates a fourfold increase in revenue over 2024.
Geraldo Melzer, co-founding partner of ABSeed, commented on the investment, “Roberto Arroyo’s trajectory alongside this market gives him a privileged perspective on the real needs of this industry. We understand that the problems they face today are common to us. Together with Terracotta, a partner fund specialized in proptechs, we want to build the bridge for them to come here in the near future.”
This funding round marks a pivotal moment for Construex, positioning it at the forefront of digital transformation in the construction and design industries in Latin America. Construex’s innovative approach and strategic expansion plans aim to transform the industry’s landscape in the region.
