30.06.2023
Cypriot startup PropTech buildbuild, which develops construction project management and margin improvement software for the SMB sector, announced this week that it has raised a $1.25 million investment from Luxembourg-based Lvl Group SARL. According to the announcement, the funds will be used to accelerate product development, marketing and scaling, with Round A scheduled for fall 2024.
buildbuild was founded in 2021 by Marko Mihic Jeftic. Previously, he worked in construction start-ups for a major European real estate developer as a full-time founder. The project’s Advisory Board includes David Basulto, CEO of ArchDaily.
The company said it is working on a platform that allows SMB construction companies, doing everything from apartment renovations and single-family home construction to general contracting in residential, commercial and road construction, to compete against the big players in the industry. In addition, the software helps increase profits by providing real-time construction and budget information online, without the need for a large accounting office.
The company stated that its “clear advantage over competitors in the market is its ease of implementation”, as all construction personnel can quickly and easily master the platform, which is very important in the SMB segment. The developers also emphasized that when creating the platform, they were primarily focused on the main process of their audience, meaning the performance of work at a construction site, while competing companies are focused on RFI (request for information).
What’s more, the company’s flagship product, a web-based project management application, allows users to create cost statements and track progress, payments, and cash flow breaks. There is also a mobile application for contractors, where they can study the criteria for the quality and cost of work, issue invoices and track payments. The app is available on the AppStore, Google Play Market, and Huawei AppGallery, while the buildbuild states that a subscription is required for the best experience.
Marko Mihic Jeftic, general manager of buildbuild, said that construction is one of the main themes of this century. He noted that, according to UN forecasts, by the end of the century the world’s population will reach 11-12 billion people, noting that “statistics tell us that the richer the country, the more square meters of housing per person.” Within this framework, he said that over the next hundred years we will have to build as much as we have done in our entire history. “This is a big challenge,” he stressed.
“When I studied architecture at university, I was inspired by technology entrepreneurs who are changing the world. I started thinking about what I could do to improve the process of building a house. In the process of studying construction, I saw in full measure one of the main problems of the industry: we are talking about the organization of real work at a construction site. It hasn’t changed much since the Egyptians built their pyramids and remains ineffective,” said Jeftich.
“I decided to change this situation by providing each participant in the construction process with a convenient tool with equal access to information, so that everyone clearly knows what needs to be done. Even when we tested buildbuild on the first clients, we saw that the quality of construction has increased five times, and, most importantly for me, the wages of workers have increased, ”he added. Today the company is testing its product in the markets of Great Britain, Cyprus, UAE, India, Malaysia, Serbia and South Africa .
The product has been privately tested by 15 customers over the course of two years. The application is currently being sold openly, and the buildbuild expects at least 100 active subscribers by the end of the year. The company estimates the total market for its platform at $5.6 billion.
Ivan Kozheurov, director of research and development of the company, noted that “not a single solution from competitors provides buildbuild functionality for issuing tasks and automating workflow.” “We have begun the transition to electronic document management with our subcontractors, a process that previously seemed impossible due to the complexity and cost of alternative solutions,” he added. Kozheurov specified that “this allows us to save a lot of time on communications and payment processes.” “We also like the company’s flexibility in developing solutions that match our work and market conditions, as well as a convenient user interface,” he concluded.
