San Francisco-based materials management platform, Kojo, has secured $39m (£34m) in a Series C funding round led by Battery Ventures.
“With this new round of funding, we’re excited to continue building best-in-class products that help contractors all over the US save money, increase their productivity, and become more resilient,” said Maria Rioumine, the firm’s CEO and founder (pictured).
The $800 billion a year construction industry is facing unprecedented challenges, with soaring construction costs, material and labor shortages, and supply chain constraints adding to the sector’s poor productivity track record.
“Supply chain disruptions and inflation have made it incredibly challenging to keep projects on-time and on-budget,” Maria added.
One of the main problems is that contractors lack control and visibility over their supply chains, and critical projects are slowed down by error-prone and manual materials ordering processes. Kojo aims to solve this problem.
Its software brings field, office, warehouse, and vendor teams onto a single platform, making it easy for contractors to manage their materials needs from project takeoff to closeout.
It is currently processing over $1 billion in materials orders for thousands of users, operating as a SaaS business, meaning it sells annual subscriptions to its software.
To date, the firm has powered the construction of nearly 10,000 projects, including hospitals, schools, and multi-family housing projects, across 46 states.
Despite the recent economic recession, the Kojo reports an annual recurring revenue of 3.5x year-on-year.
Michael Brown, general partner at Battery Ventures, who has joined Kojo’s board of directors, commented: “The construction industry has been underserved by technology for far too long, and that’s led to huge challenges over the past few years.
“We’re thrilled to be partnering with Kojo to change that and bring much needed software and financial services to commercial trade contractors.”
Kojo’s Series C builds upon its recent integration with construction software giant Autodesk.
The round also saw participation from new investors Schneider Electric, RXR, and Bienville Capital. Existing investors including 8VC, Suffolk Construction, Human Capital, AME, and BoxGroup also participated.
Image: Maria Rioumine, CEO and founder of Kojo (credit: GBX Global)
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