Construex, an online marketplace from Ecuador designed for the construction and design sectors, recently raised USD $4.6M in a seed funding round. This investment was led jointly by Zacua Ventures and Fifth Wall, with additional contributions from ABSeed and Terracotta Ventures.
The company was founded in 2019 by Roberto Arroyo and his brother Nicolás. Their idea for Construex emerged from Roberto's extensive experience in their family's construction business and his own housing projects. Specifically, he recognized the challenges in procuring materials and hiring services for housing and apartment projects, which inspired the concept behind Construex.
Roberto Arroyo explained that the difficulty in sourcing construction supplies led him and his brother to explore ways to assist other developers in overcoming similar challenges. They established Construex with the vision of modernizing the construction industry in Latin America, a market they estimate to be worth over $520 billion. Construex is among a few startups focusing on supply chain solutions in this area, with Tül in Colombia being another example.
A significant issue in this industry, according to Arroyo, is the scarcity of tech-enabled construction suppliers, with only about 4% currently using technology. Construex aims to bridge this gap by offering an online platform that connects construction product suppliers with customers more efficiently, moving away from traditional, less efficient methods of sourcing supplies.
Construex's platform includes a free version, and the company earns revenue from transactions conducted on the site, along with additional subscription-based services. The platform provides an advanced CRM system for suppliers, virtual reality showrooms, and WhatsApp integration.
Currently, Construex boasts over 80,000 registered suppliers offering a wide range of products, from architecture to engineering and furnishings. The company operates with a team of 48 across two offices.
Having bootstrapped for nearly four years and achieving profitability, Construex expanded into Chile, Guatemala, and Argentina. It has around 500 customers on its subscription model and has doubled its revenue in the current year compared to 2022.
With an eye on further growth, Construex sought venture capital to accelerate expansion into Mexico and other Spanish-speaking countries, with plans to include Brazil. The company recently opened an office in Mexico City and aims to onboard 1 million suppliers in the coming years, projecting a fourfold increase in revenue next year.
This funding round marks ABSeed's first investment outside Brazil. Geraldo Melzer, co-founding partner of ABSeed, commended Roberto Arroyo's deep understanding of the industry's needs. He emphasized the shared challenges in the construction industry and expressed a desire to facilitate Construex's entry into the Brazilian market, in collaboration with Terracotta, a fund specializing in proptech.
