Construction tech startup Kojo rebrands, expands and lands $39M in Series C funding
Summary
In other words, it provides software to help contractors get the best price for the materials they use in construction projects so they save a lot more money, move faster and have less waste.Weve already saved our customers more than $19 million on their materials orders and reduced up to 90% of the waste left over on their jobs, said CEO and co-founder Maria Rioumine.Since Kojo brought its product to market in early 2020, it has powered the construction of nearly 10,000 projects, including hospitals, schools, stadiums, office buildings and multifamily housing developments. Factor in todays soaring construction costs, material and labor shortages and supply chain constraints, and there is more demand than ever from contractors for technology that will help them operate more efficiently and less expensively.Kojo claims it can help contractors save as much as hundreds of thousands of dollars in materials annually due to far less waste, while also cutting down their order process time by 50%.While Rioumine declined to reveal hard revenue figures, she said Kojo has grown its annual recurring revenue (ARR) by 3.5 times over the past year. And in the last 18 months, it has grown its number of users by 12x.Also in the last year, Kojo has more than doubled its team to 90 employees and launched three new products: inventory management, bills of material (BOM) and invoice matching.With the addition of these three products, we have become a fully end-to-end platform, allowing contractors to manage materials from pre-construction planning to payments, Rioumine told TechCrunch.New investors Schneider Electric, RXR and Bienville Capital participated in the companys latest financing, which brings its total raised to $84 million. Existing backers including 8VC, Suffolk Construction, Human Capital, AME and BoxGroup also doubled down on their investments.Kojo declined to reveal at what valuation it raised its Series C, with Rioumine describing it only as an up round.The company plans to use its new capital to continue building out its team and invest in new offerings that cross over to the fintech world.For example, contractors will be able to reconcile invoices and pay for materials directly on Kojos platform, and with new distributor integrations, contractors will also be able to directly see distributor pricing and inventory to aid in making the best buying decisions.We have an ambitious roadmap of products that are going to help contractors make even better buying decisions, streamline payments for them and allow them to more accurately track project spend, Rioumine told TechCrunch. Were excited to be changing that, she added.Michael Brown, general partner at Battery Ventures, is joining Kojos board of directors as part of his firms investment.
Funding
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