Brokrete Raises $3M Seed to Revolutionize Construction Tech

The Acceleration of Digitization in Construction

The recent pandemic has profoundly impacted all facets of life and commerce, and the construction sector is experiencing a rapid shift towards digitization as a result. Construction material suppliers are facing increasing pressure to improve performance, mirroring trends seen in other industries.

Companies such as Dozer, Reno Run, and Toolbox have emerged, attempting to address these challenges. However, their business models often lean towards vertical integration rather than offering more open solutions.

Brokrete: A "Shopify for Construction"

Despite these efforts, ordering essential materials like concrete or bricks still typically requires construction companies to negotiate terms individually while simultaneously managing extensive records. This is the core problem that Brokrete aims to solve.

Brokrete positions itself as the “Shopify of construction,” providing a streamlined platform for the industry.

Seed Funding and Expansion Plans

The startup has successfully secured $3 million in seed funding, led by Xploration Capital, with participation from new strategic investors and existing backers. Brokrete previously completed the Y Combinator winter cohort program last year.

Notable strategic investors include Ronald Richardson, Avlok Kohli, the CEO of AngeLlist Ventures, and the MaRS Investment Accelerator Fund (IAF). The newly acquired funds will be allocated towards expanding operations into North American and European markets.

Alongside the funding announcement, Brokrete launched Storefront, an e-commerce platform specifically designed for suppliers within the construction industry.

Founder's Vision and Platform Capabilities

According to Jordan Latourelle, founder and CEO of Brokrete, “Construction today is a largely offline, $1.2 trillion market where traditional commerce methods prevail.”

He further stated that Brokrete’s Storefront product provides suppliers with the necessary tools to significantly enhance their operational efficiency. Latourelle founded the company after observing an industry that had been largely overlooked by major e-commerce platforms.

Brokrete aims to become the operating system for e-commerce in construction, while remaining accessible and affordable.

Features and Network

The Brokrete platform is designed to be code-free, white-labeled, and multi-channel, offering a specialized solution for online sales and order management.

Suppliers benefit from dedicated iOS and Android applications for managing e-commerce activities, as well as the ability to receive orders from customers who prefer more traditional methods.

The platform also incorporates features for order management, payouts, dispatching, logistics, and real-time delivery tracking. Furthermore, it offers integrations with financial and operational ERP systems.

Brokrete currently collaborates with over 1,000 contractors and boasts a network of more than 250 suppliers.

A Branded Storefront for Suppliers

Latourelle explained, “We’re empowering the construction industry to leverage a solution similar to Shopify, enabling them to establish their own online stores – essentially, a branded storefront for suppliers.”

Investor Perspective

Eugene Timko, managing partner at Xploration Capital, commented: “Construction remains one of the few substantial industries with predominantly undigitized supply chains.”

He noted that a historical obstacle to online adoption was the lack of real-time visibility into actual stock levels, hindering producers and distributors. Timko believes that Brokrete’s comprehensive solution overcomes this challenge.

He added that the platform not only allows businesses to sell through the Brokrete marketplace but also facilitates the creation of their own direct online sales channels, mirroring the impact Shopify has had on countless offline businesses.