Construction technology platform Buildxact has closed an $18.5 million Series A funding round, boosting the Melbourne-based company’s valuation to more than $125 million.
Founded more than a decade ago, Buildxact's software-as-a-service (SaaS) solution allows residential builders to streamline quoting estimates for projects and monitor job progress.
The oversubscribed round was led by Regal Funds Management, while also receiving backing from institutional investors Possible Ventures, Shearwater Capital, Ophir Asset Management, Washington H. Soul Pattinson, SecondQuarter Ventures, and Thorney Opportunities.
The funds will be used to help the company strengthen its presence in Australia, New Zealand, Canada and the US alongside preparing its launch into the UK this quarter.
Buildxact CEO David Murray said he was “delighted by the strong support from the investor community,” after the company reported it received offers exceeding $28 million.
“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,” Murray added.
According to Buildxact, the company's annual recurring revenue has grown by more than 100 per cent year-on-year, and has seen its subscriber base increase by 81 per cent during the same period. It also has subscribers across six countries and anticipates the majority of its customers and revenue will come from outside of the Australian market by 2024.
At the moment, the company says 20 per cent of Buildxact’s revenue comes from foreign markets, with the strongest growth occurring in North America.
“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,” Regal Funds Management portfolio manager Jessica Farr-Jones said.
“Diligence calls with both builders and building materials’ 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.”
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