When it comes to construction projects, any type of delay can result in increased costs both for the contractor and their customer. Shortages of certain materials and supply chain constraints in recent years haven’t helped.
So it’s not a huge surprise that Canadian construction tech startup RenoRun, which has built an e-commerce platform for construction and building materials, is today announcing a $142 million Series B funding round co-led by Tiger Global Management and Sozo Ventures. Notably, the financing is a significant jump from the $17.1 million Series A that Montreal, Quebec-based RenoRun announced in November 2019. With the latest round, RenoRun has raised a total of $173 million.
Unfortunately, the company declined to reveal at what valuation this round was raised, but the sheer size of this round caught our attention. It is also interesting that Tiger Global is a co-lead as it is yet another example of the investment giant backing a construction tech company — a growing area of interest for the firm. For example, Agora, a startup that has built a materials management platform for contractors, last August raised $33 million in a Series B round of funding led by Tiger Global Management.
RenoRun CEO Eamonn O’Rourke declined to reveal hard revenue figures but noted that the company has “grown at least 3x each year since its inception in 2017 and will continue to do so.” He added that it has served more than 10,000 customers and that its employee count is up 10x to 500 from 50 in 2019.
O’Rourke came up with the idea for RenoRun after working for two decades in the construction industry in Ireland, Australia and eventually Canada. That experience led to the realization of the need for “fast material delivery.”
The startup’s mission is simple: to help contractors be more efficient by “planning, sourcing and delivering” building supplies on demand and “with greater predictability and dependability.” The company works with a variety of manufacturers, distributors, suppliers and brands so that it can supply “thousands” of building materials and supplies to contractors — from lumber, drywall, insulation, shingles and siding to hardware, doors and paint. The premise is that the contractors are more likely to have the supplies they need to perform a job and thus, less likely to have the project delayed due to a supply shortage. They also don’t have to pay employees to do things like go buy supplies so they can thus focus on the actual construction.
Another benefit of its offering, the company says, is that it gives contractors a way to manage material orders across multiple job sites so they don’t have to deal with several different vendors.