comstruct Raises $13M to Revolutionize Construction Procurement

Reimagining Construction Procurement: Comstruct's Digital Platform

Typically, when considering technological advancements in the construction sector, attention often focuses on the physical foundations – concrete slabs supporting structures. However, Munich-based Comstruct is pioneering a different type of platform, one centered around software solutions.

A Procurement Platform for Modern Construction

Comstruct functions as a procurement platform specifically designed for construction materials. Managing material orders for large projects can be remarkably time-consuming, as many suppliers still rely on traditional methods like printed delivery notes and invoices.

Ordering frequently occurs via telephone, creating challenges in invoice reconciliation and comprehensive data reporting.

Recent Funding and Investment

The company has recently secured €12.5 million in funding, equivalent to $13 million based on current exchange rates. This investment round was spearheaded by GV and 20VC, with continued participation from existing investors Booom and Puzzle Ventures.

The Analog Procurement Problem

“The current process for procuring materials is largely analog,” explains Henric Meinhardt, co-founder and CEO of Comstruct, in an interview with TechCrunch. “An order for, say, 10 cubic meters might be placed by phone for delivery next Thursday.”

“Subsequently, a physical delivery note arrives on site and is manually entered into a spreadsheet. Invoices are sometimes even sent by post for manual comparison against the receipts.”

Avoiding App Proliferation

While individual material suppliers could develop their own applications for order processing, contractors are understandably reluctant to manage numerous separate apps simply to access essential documentation.

Comstruct addresses this issue by offering a unified platform to streamline these processes.

Onboarding Suppliers and Data Integration

Comstruct initiates contact with general contractors to gain insight into their existing material procurement workflows, recognizing the diverse range of suppliers utilized based on project location and specific requirements.

“We then engage with those material suppliers, inquiring about data sharing capabilities. This includes exploring options like EDI interfaces, email forwarding of information, or access to customer portals for data extraction,” Meinhardt clarifies.

“Following this, we structure the collected information.”

Leveraging Machine Learning for Scalability

The startup employs machine learning to seamlessly integrate each supplier onto its platform. “This technical advancement has allowed us to integrate 800 material suppliers over the past two years – a substantial achievement,” Meinhardt notes.

Core Modules and Pricing

Built upon this robust data foundation, Comstruct offers four key modules: ordering, digital delivery receipts, invoice reconciliation, and ESG reporting. The company operates on a usage-based pricing model, charging a fee per document processed.

Addressing Sustainability Reporting Needs

“The new Corporate Sustainability Reporting Directive in Europe necessitates that contractors report on the materials used in construction projects. Previously, determining the exact quantities of materials like concrete was often impossible,” Meinhardt points out.

Competitive Landscape

Comstruct’s competitors include Kojo in the U.S. and Qflow in the U.K., each with a distinct market focus. Meinhardt explains that Kojo “primarily concentrates on the procurement aspect,” while Qflow “emphasizes waste management.”

Expansion and Current Market Presence

The company initially launched in Switzerland, where Meinhardt pursued his studies. Comstruct reports strong coverage within the Swiss materials industry, with 70% to 80% of requested suppliers already integrated into the platform.

Current expansion efforts are focused on Germany, Austria, and other European countries with active construction projects.

Real-World Applications

Several large-scale construction projects have already benefited from Comstruct’s platform, including tunnel projects, a highway project in Stockholm, and a major rail project in Munich.

Notably, the Gotthard Tunnel project in Switzerland utilized Comstruct to manage all delivery notes and link them directly to corresponding invoices.