Saudi Arabia is on track to become one of the world's largest construction hubs, thanks to trillions of dollars in infrastructure and real estate projects underway in the country. But even as the country's sector continues to expand rapidly, it still clings to traditional practices, leading to project disruptions and increased costs, says Riyadh-based Construction Tech. said Ibrahim Mana, founder and CEO of startup BRKZ.
Purchasing building materials in Saudi Arabia and the wider MENA region primarily involves physical visits to suppliers, price negotiations, and lack of quality and delivery guarantees, which motivated us to launch BRKZ in 2022. Mana told TechCrunch that there are several issues that have arisen.
BRKZ is emerging from stealth today with the backing of an $8 million Series A round co-led by Beco Capital and 9900 Capital. Aramco's Wa'ed Ventures, Knollwood Investment Advisory, RZM Investment and MISY Ventures also participated in the round. This new investment follows a $5.55 million seed round led by Better Tomorrow Ventures with participation from Class 5 Global, Knollwood Investment Advisory, Plus VC, and a number of Saudi angel investors.
With the fresh capital injection, the B2B market aims to expand in Saudi Arabia and the MENA region, facilitating material sourcing by contractors and sales by manufacturers, with a focus on same-day or next-day delivery. Additionally, the startup plans to start renting equipment and sourcing human resources.
“We are looking to invest in several key areas to grow our platform. Our main focus next year will be to expand our in-house technology capabilities, double down on our financing solutions and To ensure reliable operations and supplier coverage in all cities in Saudi Arabia. [Kingdom of Saudi Arabia]Before founding BRKZ, Mana was an executive at ride-hailing company Careem, which was acquired by Uber for $3.1 billion in 2019.
“We are also working on increasing vertical integration with our suppliers to better manage our supply chain… As we prepare to offer our services to more markets, we are expanding our reach across the MENA region. “Expansion within is also an important part of our strategy,” he said.
The startup does not support direct online purchases, but instead requires buyers to generate and share requests for quotation (RFQ) through its app or WhatsApp, Mana said. The tobacco process takes 30 seconds to complete.
“This method allows for the customization and negotiation of bulk orders, which is common in the construction industry due to specific requirements and large orders that can affect price. The RFQ system allows buyers to based on the most accurate and competitive prices,” he said.
He added that the startup can process commonly ordered building materials within minutes, but “specialty materials” can take longer. However, delivery times are still faster than traditional sourcing from brick-and-mortar stores. He added that the company is also working on a pre-tailored pricing mechanism for customers.
Since its launch, BRKZ claims to have facilitated over $170 million in quotations across approximately 1,200 products from over 350 suppliers, particularly in the Kingdom, a region currently experiencing a sizable construction market. And as we establish a presence across MENA, that number is expected to further increase in size.
“The rewarding thing about digitizing traditional fields is that you can see a big impact in a short period of time. Our customers are saving a lot of time, something that used to take days. , it now takes minutes to submit an RFQ and complete an order,” said Manna. “We have people in Riyadh managing projects miles away without ever leaving their office. It's all about making things run smoother and faster.”