The company’s Series A round, led by Insight Partners, will help Remarcable expand its platform’s capabilities, onboard additional suppliers and invest in artificial intelligence (AI) tools to streamline construction workflows, according to a Tuesday (June 10) news release.
“Each year, construction material transactions worth hundreds of billions of dollars take place in the US,” Remarcable founder and CEO Clint Zhang said in the release.
“Yet, no unified platform existed to digitize and streamline these transactions and boost efficiency for both contractors and suppliers. We built Remarcable to fill that gap.”
According to the release, the Remarcable platform offers “seven-point API/EDI integration” with suppliers, letting contractors instantly access product pricing and availability, digital RFQs and responses, electronic purchase requests and acknowledgments and invoices that flow directly to and from the supplier’s ERP system.
The platform integrates with national suppliers such as Graybar, Sonepar, Wesco, Rexel and more than 400 other regional suppliers from around the country.
“With plug-and-play, highly customizable integrations to 25 accounting systems, Remarcable can provide seamless connectivity that automates accounts-payable workflows and tracks materials from the first request until final payment,” the release said.
PYMNTS wrote earlier this year about some of the technological setbacks facing the construction industry, “a $2 trillion-plus behemoth in the U.S. alone,” and one that “is notorious for payment gridlock.”
“Picture this: A general contractor finishes a multimillion-dollar project, only to find themselves buried under a mountain of paperwork, waiting months to get paid,” that report said. “Subcontractors and suppliers feel the pinch too, often left juggling bills while waiting for checks that seem to crawl through the postal system.”
Research from the PYMNTS Intelligence “B2B and Digital Payments Tracker® Series” backs this up. That data shows that 71% of subcontractors experienced delayed payments from general contractors, up from 60% in 2022.
“The average payment cycle extended to 57 days, and these payment snags can have serious consequences,” PYMNTS wrote. “Slow payments trickle down the supply chain, with smaller businesses often bearing the brunt of the delays. Some subcontractors have even gone under while waiting to be paid.”
In addition, the report found that 77% of subcontractors have had to cover material expenses out of pocket, a share that has been creeping up each year since 2021.
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