Saudia Proptech Startup Buildnow Raises $9.4 Million in Seed Funding
Buildnow aims to address challenges in the construction industry, where limited credit from suppliers can hinder growth.
Saudi Arabia-based proptech company Buildnow has secured $9.4 million in Seed funding, with a mix of equity at $6.5 million, and debt at $2.9 million. Raed Ventures and Khwarizmi Ventures co-led the round, joined by international VC’s and notable local angels like Abdulla Elyas, co-founder of Careem. Founded in 2022 by Hisham Al Saleh, Rahat Dewan, and Abdulla Sheikh, Buildnow offers a build-now-pay-later platform that provides materials on credit terms tailored for buyers while paying SME suppliers upfront in cash.
The company aims to address the challenges faced by SMEs in the construction industry, where limited credit from suppliers can hinder growth. Buildnow's CEO, Abdulla, highlighted that annually, $42 billion worth of goods are traded within Saudi Arabia's construction supply chain, often constrained by the lack of credit availability. By leveraging a credit management platform and a robust supply chain network, Buildnow digitally captures buyer data to assess credit risk objectively. This approach allows them to offer materials on tailored credit terms, benefiting both buyers and suppliers. Since its launch, Buildnow has supplied over 50,000 tonnes of raw materials and facilitated business for more than 250 SMEs.
“Investing in Buildnow was a decision driven by our confidence in the team’s ability to address a critical market inefficiency,” Saed Nashef, Founding Partner at Raed Ventures, tells StartupScene. “Buildnow’s offering doesn’t just facilitate transactions; it in fact empowers SMEs within the construction industry, an industry that’s undergoing a period of massive expansion in the Kingdom, and represents a cornerstone of Vision 2030.”
Having grown by six times in 2023 alone, Buildnow is poised for further expansion with the recent funding. Buildnow is actively seeking world-class talent to join their team, aiming to capitalize on lost opportunities and drive growth for businesses in the sector.
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