BRKZ, a dynamic construction tech startup headquartered in Riyadh, has successfully secured $17 million in its Series A funding round, marking a significant milestone in its journey to transform the construction supply chain in Saudi Arabia. Established in 2023 by Ibrahim Manna, a former executive at Uber subsidiary Careem, the company aims to address inefficiencies in the construction industry through a tech-enabled managed marketplace and tailored financing solutions.
Founded shortly after Manna experienced firsthand the challenges of the construction supply chain while building a family house, BRKZ has made remarkable strides in just a short period.
"After Careem’s exit to Uber, I bought a family house in May 2020 and faced the inefficiencies of the construction supply chain—lack of visibility in material selection, uncertainty around the whereabouts of goods, and price volatility," – Ibrahim Manna
"That frustration made me realize how outdated the industry is and that it presented a huge opportunity worth exploring." – Ibrahim Manna
Since its inception, BRKZ has raised a total of $22.5 million, including $5.5 million from pre-seed and seed rounds. The company has aggressively expanded its operations into over 40 cities within Saudi Arabia's Central, Eastern, and Western provinces. Its robust platform has propelled the Request for Quotation (RFQ) volume from $170 million last March to an impressive $350 million (SAR 1.3 billion) today.
BRKZ's innovative approach has not only quadrupled its revenue since its Series A1 but also attracted more than 850 contractors and factories to utilize its platform for major projects. The company boasts positive unit economics and has seen its valuation grow by 46% over the past year.
The recent funding round saw participation from existing investors such as Aramco's Waed and BECO Capital, alongside new investors. With $8 million raised in equity and $1 million in debt, BRKZ's total Series A funding now stands at $17 million. This influx of capital will support the company's ambitious plans to further expand its reach within Saudi Arabia and venture into importing hard-to-source construction materials from global markets.
BRKZ plans to initially source materials from China and later expand to India and Turkey. The company's focus on establishing a corridor of trade between China and Saudi Arabia is expected to be a game-changer for local contractors and suppliers.
"We’re quite excited about building or enabling a corridor of trade between China and Saudi as we start importing goods we know our contractors, suppliers, and others would like to get from China. If materials are needed outside of Saudi, we’ll get them, white label these goods, and sell them to contractors, developers, and suppliers in Saudi. Our focus is to go deeper into Saudi Arabia," – Ibrahim Manna
BRKZ's strategic vision extends beyond procurement. The company aims to establish itself as a full-service construction ecosystem by addressing four critical pillars: procurement, financing, workforce supply, and equipment procurement/rental. By offering a comprehensive suite of services, BRKZ seeks to streamline processes for its clients and mitigate common cash flow challenges through its financing product.
In addition to expanding its presence within the Central, Eastern, and Western provinces, BRKZ plans to extend its operations to the North and South provinces of Saudi Arabia. This expansion aligns with the company's commitment to fostering growth within the Kingdom's construction sector.
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