Australian tech startup Buildxact has raised $18.5 million in a series A as it launches in the UK.
The SaaS (software-as-a-service) tech solution for residential builders is already in the US and Canadian markets and the funds will enable rapid growth in North America, alongside a launch in the UK this week. The raise values the business at $125 million.
The raise was led by Andrew and Philip King’s Sydney investment firm Regal Funds Management, supported by Alex Waislitz’s Thorney Opportunities , Possible Ventures, Shearwater Capital, Ophir Asset Management, Washington H. Soul Pattinson, and Aconex co-founder Leigh Jasper’s SecondQuarter Ventures.
CEO David Murray, who is currently in San Francisco working on the North American growth strategy, said the company set out to raise $15 million, but ended up receiving offers exceeding $28 million before settling on the $18.5 million.
He said Jasper, who is on the Buildxact board, said “you can always take a bit more. A bit more in the bank is always useful.”
Jasper originally backed Buildxact in 2019, with his fellow Aconex co-founder Rob Phillpot coming on board as an investor during a $6 million raise in late 2020.
Murray’s goal is to make Buildxact the lobal leader in residential construction software, taking on the traditional Excel spreadsheet in a sector where technology has mostly focused on commercial development. The software is designed to help builders and suppliers better control their business, delivering greater efficiency and simplicity.
More than 20% of revenue already comes from the North American market. Buildxact now has subscribers in six countries and expects the majority of its customers and revenue to come from outside the Australian market by 2024. Annual Recurring Revenue grew more than 100% year-on-year in FY21,with an 81% increase in the subscriber base over the same period
Murray said the team was delighted by the strong support from the investor community.
“Our company is solving fundamental problems for the residential construction industry, and through this capital, we will be able to further expand our global operations, becoming the clear leader in software solutions for the builder and their engagement with suppliers,” he said.
The funds will also be put towards continued product innovation.
Regal Funds Management Portfolio Manager Jessica Farr-Jones said Buildxact addresses a large but underserved market that typically relies on inefficient applications such as Word, Excel and email to estimate costs and manage projects.
“Diligence calls with both builders and building materials’ suppliers revealed a significant degree of ‘customer love’, citing Buildxact as the only cloud-based job estimating and job management solution,” she said.
“After already achieving significant traction in the Australian market, Regal is excited about the opportunity for Buildxact to penetrate further in the US and Canada, and launch into the UK. With an incredibly strong founder-led management team, we believe the company is uniquely placed to become a global leader in this market.”
Possible Ventures managing partner Chris Hitchen said the company had a remarkable mix of deep industry knowledge, and proven experience developing large-scale software companies.
“Buildxact is the perfect example of simple-to-use software taking an industry from the dark ages of spreadsheets, to the speed and convenience of the cloud,” he said.
“Building on their considerable traction in Australia, we are excited to support their global expansion.”