BRKZ secures USD $17 million to enhance Saudi expansion

BRKZ has announced the successful completion of its $17 million Series A funding round, aimed at improving construction procurement and financing solutions in Saudi Arabia.

The construction materials marketplace has broadened its total funding to USD $22.5 million with the recent financial backing. This series of funding efforts was intended to enhance BRKZ's platform and expand its operations amidst the rising demand for efficient procurement processes in the kingdom's multi-trillion-dollar construction landscape.

With Saudi Arabia seeking to expedite its portfolio of USD $3 trillion in infrastructure and building projects, challenges such as fragmented supply chains and inefficient procurement processes remain prevalent. BRKZ aims to tackle these challenges by leveraging technology to enhance how contractors source and purchase construction materials. The company's funding comprises an $8 million Series A2 round concluded in January, augmented by $1 million from Capifly in venture debt, following an initial $8 million in Series A1 financing completed in December 2023.

Legacy investors contributing to this round include BECO Capital, Aramco's Waed, 9900 Capital, Better Tomorrow Ventures, RZM Investment, Class 5 Global, MISY Ventures, Knollwood Investment Advisory, and Fluent Ventures.

"Traditional procurement in construction is highly fragmented and manual, often requiring contractors to juggle multiple suppliers, long negotiations, and delayed payments," stated Ibrahim Manna, Founder and Chief Executive Officer of BRKZ. "This funding will help us double down on tech development, enhance our BNPL offering aligned with construction cash flow cycles, and expand into cross-border trading."

BRKZ's platform is designed to modernise the relationship between contractors and suppliers, featuring a tech-based marketplace complemented by financing options. The digital platform offers contractors access to over 7,000 stock-keeping units from over 1,100 local suppliers, with the ability to receive quotes within 20 minutes. Moreover, the platform's financial solutions are tailored to construction cash flow cycles, addressing critical industry pain points.

Since its Series A1 launch, the platform has demonstrated significant growth, with a revenue increase of four times over 2024. BRKZ serves over 850 unique contractors and factories involved in major projects such as King Salman Park, Neom, and the Red Sea Project. The firm has expanded its city delivery network to cover over 40 regions across Saudi Arabia.

Real-world cases highlight BRKZ's impact. For example, a contractor operating in the Kingdom's central region utilised BRKZ to procure local materials for a Western Region project, despite lacking in-house personnel there. Similarly, a cement block factory expanded its customer base by listing on BRKZ, no longer limited by geographic constraints.

"Partnering with BRKZ has revolutionized how we connect with contractors and streamline our operations. Their innovative approach to digitizing the construction industry is setting a new standard for efficiency and growth," commented AbdulRauf H. Al-Matar, Assistant General Manager at AlRashed Building Materials.

Tamer Salah, Chief Executive Officer at AlMimar AlAraby for General Contracting, added: "Working with BRKZ has been a game-changer for us. Their focus on understanding contractors' needs and delivering tailored solutions has made it easier to meet tight deadlines and exceed customer expectations. BRKZ's highly advanced technology provides the best e-commerce platform, which makes it easy to manage my orders and get automated updates on their status."

The construction sector in the Middle East and North Africa is poised for robust growth, propelled by high-profile projects reshaping the area. Projects like Neom, The Red Sea Project, and King Salman Park highlight the exigent demand for tech-driven procurement solutions.

"The construction industry is foundational to the Kingdom's Vision 2030 and is ripe for technology and organizational optimization," said Dany Farha, Co-founder and Managing Partner at BECO Capital. "The BRKZ team has executed its product and operational roadmap to drive efficiencies in this rapidly scaling sector, and we're excited to continue supporting them in their next chapter. BRKZ's financing product will complement their digitized procurement platform and address customer cash flow challenges. Having known Ibrahim and the team for years, we've seen firsthand their agility, prudence, and unique skill set that enable them to fulfill their promise of digitizing this industry."

Looking ahead, BRKZ intends to establish offices in Saudi Arabia's Northern and Southern regions in 2025 and expand its global supplier base with an emphasis on China and India. The company continues to refine its technology platform and financing offers, aiming to become the go-to construction procurement solution in the region.