Buildxact provides a simple solution for residential builders to better manage and grow their business, has closed an $18.5 million ($14 million) in a Series A funding round.
Founded in Australia, and with already an established presence in the USA and Canada, Buildxact secured funding from some of Australia’s preeminent venture capital funds, taking Buildxact’s valuation post money to more than AU$125 million ($92.5m).
Buildxact’s attracts investor interest
With the ambition to become a global powerhouse in construction tech, the company will use the funds to expand its global footprint, with deeper penetration of the ANZ, United States America and Canadian markets, and a launch in the United Kingdom this quarter.
Specifically, Buildxact will double down on their growth in the USA and Canada, and a large part of the new funds will be used to fund the company’s expansion in this region.
The funds will also be put towards continued product innovation.
Recently, the construction tech player announced a significant launch to capture a new segment of the residential construction market, becoming the first provider in the world to connect builders with materials suppliers through one central platform.
Buildxact offers a SaaS solution for the residential construction sector to help builders and suppliers better control their business, delivering greater efficiency and simplicity.
Backing Buildxact’s vision, the oversubscribed Series A funding round saw six of Australia’s most respected investment institutions participate, including Regal Funds Management as the lead investor, Possible Ventures, Shearwater Capital, Ophir Asset Management, Washington H. Soul Pattinson, SecondQuarter Ventures, and Thorney Opportunities.
There was strong demand from investors, with offers exceeding $28 million ($20.7m).
Buildxact’s stakeholder commentary
Jessica Farr-Jones, the Portfolio Manager at Regal Funds Management expounded further.
“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 builders and suppliers revealed a significant degree of ‘customer love’, citing Buildxact as the only cloud-based job estimating and job management solution.”
“After already achieving significant traction in the Australian market, Regal is excited about the opportunity for Buildxact to penetrate further in the U.S. and Canada, and launch into the UK.”
“With an incredibly strong founder-led management team, we believe that the company is uniquely positioned to successfully become a global leader in this market.”
Chris Hitchen, the Managing Partner at Possible Ventures also shared his insights.
“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.”
“With considerable traction in Australia, we are excited to support their global expansion.”
Buildxact’s executive commentary
David Murray, the Chief Executive Officer of Buildxact said, “We are delighted by the strong support from the investor community, and the confidence they show in 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.”
Leigh Jasper, a Buildxact board member and Aconex (acquired by Oracle) founder said, “Buildxact has performed extremely well, growing rapidly, especially in the USA market.”
“Iam thrilled to build on my early investment for the next phase of growth and vision to enable residential builders get ahead with online job estimating and management software.”
Buildxact’s strong U.S. footprint and UK launch
This comes after a strong year of growth for Buildxact, with Annual Recurring Revenue growing more than 100% in FY21, and an increase of 81% of its subscriber base.
20% of Buildxact revenues are now coming from foreign markets, with the strongest growth coming from the United States of America and Canadian markets, where the company signed recent strategic partnerships, including with leading ERP provider, Epicor.
Buildxact currently has subscribers in six countries and expects the majority of its customers and revenue to come from outside the Australian market by the year 2024.
To further accelerate global operations, the company will launch in the UK in early 2022.
The size and make-up of the residential construction market in the UK, together with a gap in tech offering, and similar building practises to the markets that Buildxact currently operates in, makes the United Kingdom a natural next step in the company’s global expansion strategy.