Buildops Achieves Unicorn Status with $127M Funding

Innovation in Commercial Services Technology

Historically, technology within the commercial services sector hasn’t been perceived as particularly groundbreaking. However, a significant demand for innovative solutions is currently driving change within the industry.

BuildOps Secures $127 Million in Series C Funding

This demand has materialized in a substantial funding round for a company dedicated to optimizing commercial contracting workflows. BuildOps, a developer of software tailored for commercial services contractors, announced on Friday the completion of a $127 million Series C funding round. This round was spearheaded by Meritech Capital and has resulted in a post-money valuation of $1 billion for the company.

According to Alok Chanani, co-founder and CEO, this valuation represents “more than double” the company’s previous valuation. This prior valuation was achieved in a $50 million Series B round announced in May 2023, supplemented by a $36 million follow-on raise exclusively for existing investors.

Company Overview and Growth

Established in 2018 and headquartered in Los Angeles, BuildOps has created field service management software. This software assists commercial contractors throughout the United States and Canada with project oversight, service execution, dispatching, and invoicing. The company leverages what it terms “AI-powered automation” to achieve these functionalities.

BuildOps asserts that its software empowers contractors – including those specializing in HVAC, plumbing, mechanical and electrical systems, and fire and life safety – to enhance efficiency, minimize errors, reduce operational downtime, and ultimately improve profitability.

“Contractors are the backbone of our infrastructure, working tirelessly to maintain essential services,” Chanani stated in an interview with TechCrunch. “However, they face significant challenges, including labor shortages, rising expenses, and outdated technology.”

Founding Team and Leadership

Chanani previously established USA Commercial, a commercial real estate firm. Co-founder Neeraj Mittal previously held the position of director of engineering at ServiceTitan. Steve Chew, the third co-founder, has experience with Microsoft, Nextag, and Fundly.

Records indicate that Mittal is no longer affiliated with the company.

Business Model and Customer Base

BuildOps employs a software-as-a-service (SaaS) model, offering per-user pricing within the framework of an annual contract. The company currently serves over 1,000 commercial contractor clients, including prominent names like J.H. Kelly, Haynes Mechanical, Dynamic Systems, Inc., and Baker Electric.

While Chanani refrained from disclosing specific revenue figures, he indicated that BuildOps has experienced “exponential growth” since the platform’s launch in 2020. The company exceeded “seven figures” in revenue during its first year and subsequently tripled that amount in both 2021 and 2022. Revenue then doubled in both 2023 and 2024.

Currently, BuildOps is not generating a profit, as its focus remains on “aggressive scaling and investment in future development,” according to Chanani.

Future Plans and Investment Allocation

The newly acquired capital will be allocated towards expanding the company’s workforce and investing in product and technology development, with a particular emphasis on its API architecture. BuildOps is also considering “strategic acquisitions” to further its growth.

The company’s current employee count stands at approximately 375, representing a 50% increase compared to the previous year.

Industry Perspective and Investor Confidence

Paul Madera, general partner and co-founder at Meritech Capital, views the commercial services sector as a “massive and critically important segment of the economy that has been largely overlooked by modern software solutions.”

“The BuildOps team recognized this opportunity early on and has developed the most comprehensive operating system for commercial services available today,” Madera commented, adding that he will be joining BuildOps’ board of directors as part of the financing. “Contractors consistently report that BuildOps has significantly improved their operational and financial performance, and, crucially, allows them to provide better service to their customers.”

Madera also highlighted his firm’s attraction to BuildOps’ exclusive focus on the commercial sector.

“Each client operates uniquely, necessitating a highly configurable software solution, akin to any core system of record,” he explained. “BuildOps has successfully balanced product depth, flexibility, and usability in a distinctive manner.”

Notably, TechCrunch Editor-in-Chief Connie Loizos identified BuildOps as one of 2019’s most “notable young startups” in a previous article.

Investor Participation

In addition to Meritech Capital, the Series C funding round included participation from new investors Bond Capital and Schneider Electric’s SE Ventures, as well as existing backers Fika Ventures, Next47, StepStone Group, and Titanium Ventures. Previous investors include 01A, Founders Fund, MetaProp B Capital, 137 Ventures, and Liquid 2.