Construction company BRKZ secures $8 million funding to capitalize on the flourishing building sector in Saudi Arabia.
As the construction boom continues in Saudi Arabia, Riyadh-based startup BRKZ is set to announce an additional $8 million in equity, bringing their Series A funding round to a close. This latest investment comes as investors see the potential in BRKZ, given the country's $3 trillion infrastructure program and Vision 2030 development plan.
Ibrahim Manna, the founder and CEO of BRKZ, isn't one to downplay the significance of the projects underway in Saudi Arabia. With undertakings like Neom, the 2030 World Expo, and the 2034 football World Cup, along with associated infrastructure, the scale of work is monstrous.
BRKZ aims to bridge the gap between contractors and raw material suppliers in an industry that's still quite fragmented. The platform allows contractors to post their material needs, and suppliers bid to fulfill those resources. The platform also incorporates transport and logistics providers, making shipping and fulfillment more straightforward.
Our website first featured BRKZ back in March, revealing their initial $8 million Series A financing. Today's announcement doubles that figure, with an additional $1 million in debt finance. With this new round of financing, BRKZ has raised a total of $22.5 million.
Manna attributes the company's growth in 2024 to the rapid adoption of their platform by customers. In fact, they've signed up around 1,100 suppliers and 500 transport providers, competing for business from an average of 250 contractors each month. Revenues at BRKZ grew an impressive fourfold during that year, enabling the delivery of 8.25 million blocks - the equivalent of three pyramids of Giza - and more than 40,000 tons of steel, equivalent to the Burj Khalifa's construction weight.
Contractors don't pay a dime to post their requirements on the platform. Instead, BRKZ generates revenues through commission payments from suppliers when they receive orders through the platform. This tactic has won over contractors, who often struggle with identifying suppliers and price comparisons.
AlMimar AlAraby contractor Tamer Salah has noticed a significant improvement in his business since using the platform. "It's made it easier to meet tight deadlines and exceed customer expectations," Salah says. "It simplifies order management and provides automated status updates."
Investors in BRKZ, including BECO Capital, Aramco's Waed, 9900 Capital, Better Tomorrow Ventures, RZM Investment, Class 5 Global, MISY Ventures, Knollwood Investment Advisory, and Fluent Ventures, are optimistic about the company's potential in Saudi Arabia's construction sector. Dany Faha, co-founder and managing partner at BECO Capital, said, "The construction industry is foundational to Vision 2030, and there's significant potential for technology and organizational optimization. BRKZ's team has executed their product and operational roadmap to drive efficiencies within this rapidly scaling sector."
Manna is focused on expansion, looking to grow BRKZ's financing activity, geographical spread, and cross-border reach. With a focus on technology development, enhanced buy-now-pay-later offerings, and expansion into global markets, including China and India, it looks like BRKZ is set to carry on making waves in the construction industry.
Saudi Arabia's Vision 2030 is seeing a transformation in the construction sector, and BRKZ's innovative approach to procurement is playing a significant role. The $17 million Series A funding round validates the company's strategy and rapid adoption in the construction procurement market, making BRKZ a key player in the country's evolving infrastructure landscape.
[1] Enrichment Data – Series A Funding and Revenue Growth[2] Enrichment Data – Geographical Expansion[3] Enrichment Data – Platform Impact[4] Enrichment Data – Industry Recognition and Future Plans[5] Enrichment Data – Alignment with Vision 2030
Small entrepreneurs in the Saudi Arabian construction industry stand to benefit significantly from BRKZ's platform. With its user-friendly interface and commission-based revenue model, BRKZ levels the playing field for suppliers, making it easier for them to attract and secure business from contractors.
The additional equity investment in BRKZ is a testament to the potential of small entrepreneurs in the Saudi Arabian business landscape, as investors see the value in technology-driven solutions that can streamline and optimize the construction industry as part of the country's Vision 2030 development plan.
