- Buildnow secures $9.4M in seed funding led by Raed Ventures and Khwarizmi Ventures, with notable backing from Careem co-founder Abdulla Elyas.
- Buildnow’s “Build Now, Pay Later” solution bridges cash flow gaps in construction, offering tailored credit terms and upfront payments to SME suppliers, fostering financial resilience.
- Facilitating transactions for 250+ SMEs and 50,000+ tonnes of raw materials, Buildnow experienced six-fold growth in 2023, positioning for further expansion with a diverse team and visionary leadership.
Buildnow, MENA’s pioneering “Build Now, Pay Later” solution, has secured $9.4 million in seed funding, marking a significant milestone for the startup. The funding round, comprising both equity ($6.5 million) and debt ($2.9 million), was co-led by Raed Ventures and Khwarizmi Ventures. Notable participation also came from international venture capitalists and prominent local angels, including Abdulla Elyas, the co-founder of Careem.
Founded in April 2022 by Hisham Al Saleh, Rahat Dewan, and Abdulla Sheikh, Buildnow boasts a diverse team with extensive experience spanning the realms of banking, fintech, and construction. The inception of Buildnow was inspired by Abdulla’s firsthand encounter with the challenges faced by SMEs, particularly in the construction sector, due to the limited availability of credit from suppliers.
According to Abdulla, the CEO of Buildnow, the construction supply chain in Saudi Arabia alone witnesses transactions worth a staggering $42 billion annually. However, suppliers often extend credit to buyers based on subjective relationships rather than objective risk assessment, resulting in limited credit availability and cash flow constraints for SMEs.
To address this issue, Buildnow leverages its credit management platform and a vast supply chain network to digitally capture crucial data points such as financials, legal status, and market reputation of buyers. This data-driven approach enables Buildnow to conduct a more accurate assessment of credit risk and tailor credit terms accordingly for buyers. Meanwhile, Buildnow ensures that SME suppliers receive upfront cash payments for the materials they supply.
By bridging the gap between suppliers and buyers in the construction industry, Buildnow aims to alleviate cash flow constraints for SMEs and empower them to pursue growth opportunities more effectively. The innovative “Build Now, Pay Later” model not only facilitates smoother transactions within the construction supply chain but also fosters greater financial inclusivity and resilience for SMEs in the MENA region.
Key Benefits of the Platform
- Speed: Users can swiftly obtain materials in bulk, accelerating the delivery of goods and services.
- Ease: Conducting business digitally streamlines operations in traditional sectors, enhancing overall convenience.
- Flexibility: Access to an extensive network of suppliers allows buyers to procure raw materials with tailored credit terms, aligning with their business needs and preferences.
Abdulaziz AlTurki, Managing Partner at Khwarizmi Ventures, expresses confidence in Buildnow’s leadership, emphasizing the founders’ passion and intelligence in tackling a vast yet fragmented sector. The investment thesis at Khwarizmi Ventures centres on backing bright and ambitious founders operating in underserved markets.
With Buildnow’s diverse and relevant backgrounds, AlTurki believes the team is well-equipped to seize the opportunity and drive growth in the construction and building materials SMEs segment.
Saed Nashef, Founding Partner at Raed Ventures, underscores the decision to invest in Buildnow as driven by the team’s capability to address a critical market inefficiency. He highlights that Buildnow’s solution not only facilitates transactions but also empowers SMEs within the construction industry. Nashef notes the industry’s significant expansion in the Kingdom, which aligns with the goals of Vision 2030.
The success of Buildnow translates to enhanced productivity and stability for thousands of SMEs, thus contributing to the realization of Vision 2030’s mega projects aimed at building the new Saudi Arabia.
Buildnow has already facilitated business transactions involving over 50,000 tonnes of raw materials, connecting more than 250 SMEs. Experiencing a six-fold growth in 2023 alone, Buildnow is now poised for explosive expansion.
With the infusion of new funding, Buildnow is gearing up to empower the entire construction SME supply chain, enabling them to seize previously untapped opportunities and propel their growth trajectory. To accomplish this mission, Buildnow is actively seeking world-class talent to join their team and drive the company to new heights.
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Last Updated on March 6, 2024 by Safiya K
