Following robust growth in the ANZ, U.S. and Canada, and capturing users from six countries, the funds will enable Buildxact to fuel its rapid growth in North America, and its imminent launch in the UK
Melbourne, Australia – 31 January 2022 – Buildxact, a global SaaS company providing a simple solution for residential builders to better manage and grow their business, has closed an AU$18.5 million (US$14 million) in a Series A funding round. Founded in Australia, and with already an established presence in the U.S. and Canada, Buildxact secured funding from some of Australia’s preeminent venture capital funds, taking Buildxact’s valuation post money to more than AU$125 million (US$92.5 million).
With the ambition to become a global powerhouse in construction tech, the company will use the funds to expand its global footprint, with deeper penetration of the ANZ, U.S. and Canadian markets, and a launch in the UK this quarter. Specifically, Buildxact will double down on their growth in the U.S. and Canada, and a large part of the new funds will be used to fund the company’s expansion in this region.
The funds will also be put towards continued product innovation. A few months ago, the construction tech player announced a significant launch designed to capture a new segment of the residential construction market, becoming the first provider in the world to connect builders with materials suppliers through one central platform.
Buildxact offers a SaaS solution for the residential construction sector, designed to help builders and suppliers better control their business, delivering greater efficiency and simplicity. Backing Buildxact’s vision, the significantly oversubscribed Series A funding round saw six of Australia’s most respected investment institutions participate, including Regal Funds Management as the lead investor, Possible Ventures, Shearwater Capital, Ophir Asset Management, Washington H. Soul Pattinson, SecondQuarter Ventures, and Thorney Opportunities. There was strong demand from investors, with offers exceeding AU$28 million (US$20.7 million).
Explaining the investment opportunity, Jessica Farr-Jones, Portfolio Manager at Regal Funds Management said that “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. 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. With an incredibly strong founder-led management team, we believe the company is uniquely placed to become a global leader in this market.”
Chris Hitchen, Managing Partner at Possible Ventures added “From our first interactions with Buildxact, we knew they had a remarkable mix of deep industry knowledge, and proven experience developing large-scale software companies. Buildxact is the perfect example of simple-to-use software taking an industry from the dark ages of spreadsheets, to the speed and convenience of the cloud. Building on their considerable traction in Australia, we are excited to support their global expansion.”
David Murray, CEO of Buildxact said “We are delighted by the strong support from the investor community, and the confidence they show in Buildxact. 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.”
“Buildxact has performed extremely well over the last few years, growing rapidly, especially in the U.S. market,” says Buildxact board member and Aconex (acquired by Oracle) founder Leigh Jasper, who also participated in the round. “I’m thrilled to build on my early investment for the next phase of the company’s growth and the long-term vision of enabling residential builders to get ahead with simple online job estimating and management software.”
A strong U.S. footprint and upcoming UK launch
The announcement comes off the back of a strong year of growth for Buildxact, with Annual Recurring Revenue growing more than 100% year-over-year in FY21, and an increase of 81% of its subscriber base over the same period. Twenty percent of Buildxact revenues are now coming from foreign markets, with the strongest growth coming from the U.S. and Canadian markets, where the company signed recent strategic partnerships, including with leading ERP provider, Epicor. Buildxact now has subscribers in six countries and expects the majority of its customers and revenue to come from outside the Australian market by 2024.
To further accelerate global operations, the company will launch in the UK in early 2022. The size and make-up of the residential construction market in the UK, together with a gap in tech offering, and similar building practices to the markets that Buildxact currently operates in, makes the UK a natural next step in the company’s global expansion strategy.
At Buildxact, we give custom home builders and suppliers the power to control their business to get the job done. With our easy-to-use software, job estimates, quotes and schedules take less time and ordering supplies is streamlined using online price lists. Our customers have a clear sight of income and expenses, and we provide the latest cloud-based technology to keep them ahead of the curve and win the jobs needed to grow their business.
Buildxact was founded in 2011 because repetitive tasks, like estimating, should take less time so that everyone has more time for what truly matters in life. Buildxact operates in the U.S., Canada, Australia, New Zealand. Buildxact ranks among the fastest-growing companies in Australia as recognized by The Australian Financial Review’s 2021 Fast 100 List.
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