Ambar Raises $36M Series C to Revolutionize Brazilian Construction

Ambar Secures $36 Million Series C Funding

Brazilian construction technology firm Ambar has announced the successful completion of a substantial Series C funding round, raising R$204 million – equivalent to approximately $36 million based on current exchange rates. The investment was jointly spearheaded by Echo Capital and Oria Capital, with further participation from TPG Capital, Argonautic Ventures, and other investors.

Company Background and Funding History

Founded in 2013, Ambar’s core mission is to enhance efficiency within the civil construction sector through the application of innovative technologies. To date, the company has secured R$360 million in equity funding, translating to roughly $100 million, as estimated by CEO Bruno Balbinot.

Fluctuations in exchange rates over time make precise dollar conversions challenging. Furthermore, the total capital raised doesn’t fully reflect the venture debt the company has also secured.

Strategic Use of Funds

With this significant capital injection, Ambar intends to prioritize the expansion of its digitization services, recognizing a considerable demand for these solutions throughout Latin America. This was conveyed by Balbinot in discussions with TechCrunch.

Market Focus and Competitive Advantages

While Ambar is experiencing revenue growth in Spanish-speaking Latin American countries, Brazil remains its primary market. The country offers a dual advantage: it represents the largest market in the region, and the use of Brazilian Portuguese creates a barrier to entry for competitors.

Currently, Ambar serves 467 active clients, including three in the United States. However, the U.S. presence is primarily exploratory, while the company maintains a strong foothold on 1,500 construction sites across Brazil.

Two-Pronged Business Model

Ambar operates through two distinct divisions: digitization, which is the focus of the current investment, and industrialization, often compared to a modular construction system akin to building with Lego blocks.

It’s important to note that Ambar does not function as a general contractor. “We collaborate with construction companies, but we do not undertake construction projects ourselves,” Balbinot clarified. He emphasized that the company’s financial metrics surpass those typically seen in the construction industry, solidifying its position as a technology-driven enterprise.

Inspiration from the Automotive Industry

Balbinot and co-founder Ian Fadel draw inspiration from the automotive sector, where they previously collaborated with Volkswagen. Their goal is to implement similar process-oriented methodologies within the construction industry.

Sustainability and ESG Commitment

Improving construction efficiency also contributes to greater sustainability by optimizing resource utilization and minimizing waste, a significant issue in traditional construction practices.

This commitment aligns with the values of its investors. Oria Capital, a certified B corporation, prioritizes investments that contribute to the United Nations’ Sustainable Development Objectives, as detailed on their website.

Investor Alignment and Track Record

The Series C round was also co-led by Echo Capital, a new growth fund established by Ambar board member Guilherme Weege. Weege is actively involved with the United Nations Global Compact initiative, and Grupo Malwee’s CEO has pledged to the Business Ambition for 1.5°C commitment.

Both investment firms boast successful portfolio companies. Weege’s family office supported Infracommerce, a Brazilian firm that recently launched an IPO on the Novo Mercado segment of the B3 stock exchange. Oria’s third fund provided follow-on funding to Zenvia, which went public on the Nasdaq last July.

Future Growth Plans

Ambar has ambitious growth targets for the coming year. Balbinot stated the company aims to double the number of concurrent construction projects utilizing Ambar’s products and acquire 970 new clients in 2022.

Focus on Platform Integration

Following the acquisition of software company Autodoc, Ambar is prioritizing the integration of its IT infrastructure. The company intends to consolidate its offerings into a single, unified platform, providing clients with streamlined access to all services. “We aim to replace multiple applications and control points with a single login and a unified experience,” Balbinot explained.