Construex Raises $4.6 Million to Digitize Latin American Construction Industry

Construex, an Ecuador-based software-as-a-service marketplace, has raised $4.6 million in seed funding to accelerate its mission of digitizing the construction industry in Latin America.

“This is our first step towards our expansion across LatAm,” the company said in a Monday (Nov. 27) post on LinkedIn. “It’s the beginning of celebrated new partnerships. It’s our beginning as a VC-based startup.”

Founded in 2019 by Roberto Arroyo and his brother Nicolás Arroyo, Construex aims to address the challenges faced by developers in the construction and design sectors, TechCrunch reported Monday.

Roberto Arroyo’s extensive experience in his family’s construction business, coupled with his own housing projects, led him to recognize the need for a solution that simplifies the procurement of materials and services, according to the report.

One of the major hurdles faced by the Latin American construction industry is the lack of information and technology adoption, the report said. Only 4% of construction suppliers in the region are tech-enabled, making it difficult for developers to efficiently connect with suppliers and source the necessary materials.

Construex aims to bridge this gap by providing a digital platform that connects construction product suppliers with customers, per the report.

With more than 80,000 registered suppliers and over 700,000 products available, Construex offers a wide range of options for developers, from architecture to engineering to furnishings, according to the report.

A key feature that sets Construex apart is its robust customer relationship management (CRM) system, the report said. Suppliers can leverage the platform’s CRM capabilities, virtual reality showrooms and integration through WhatsApp to enhance their interactions with customers.

After starting as a bootstrapped venture, Construex achieved profitability and expanded its operations into Chile, Guatemala and Argentina, per the report. The company currently operates with a team of 48 employees across two offices.

To further accelerate its growth and expansion, Construex recently opened an office in Mexico City, according to the report. The company aims to onboard 1 million suppliers in the next few years and expects to multiply its revenue fourfold in the coming year. This plan includes expanding into Mexico and other Spanish-speaking countries, as well as adding Brazil to its pipeline.

PYMNTS Intelligence has found that construction firms are looking to technology to help them improve operations and build resilience. Thirty percent of such firms said they are preparing for a possible recession by investing in technology to save time and costs, according to “Building Better Cash Flow In Construction With Digital Payments,” a PYMNTS and American Express collaboration.