Construction tech company Buildxact has secured $6 million in new funds via an over-subscribed capital raise. The funds will enable Buildxact to continue to improve its estimate and project management software platform for small residential builders, market itself in the Australian and New Zealand markets (ANZ), and boost its presence in the large North American market.
The funds come via existing shareholders, including Aconex co-founders Rob Phillpot and Leigh Jasper, who continue to support the company’s growth initiatives.
Buildxact provides an estimating and project management software platform to thousands of small residential home builders and remodelers in Australia, New Zealand, the United States and Canada. The software helps builders estimate jobs quickly and accurately, keep projects on track and manage financials on a single system.
Growing Subscriber Base
Since March 2020, Buildxact’s subscriber numbers have grown more than 140% each month compared to same month 2019. In September 2020, the number of Buildxact subscribers grew by more than 200% compared to September 2019.
“Our software platform has resonated strongly among small residential builders because of the ease of use and value it provides," Buildxact CEO David Murray says. "The small builder has historically been underserved and to see Buildxact resonate consistently to these builders across our focus markets is very pleasing. As a result, we have decided to accelerate our investment in growing market share and into our product innovation.”
Funds raised will go toward establishing greater awareness of the Buildxact brand and building its appeal in the markets that the company currently operates in. In the U.S., Buildxact initially focused on large state markets such as California and Texas but has received interest in its software platform from across the U.S.
The subscriber base that Buildxact has acquired in North America over the last year and a half (11 months in the U.S.) took ANZ almost four and a half years to achieve. Also, on the current growth trajectory, North America is on track to achieve in less than three years the same subscriber base that Australia achieved in nine years.
“While still in the early phases of market launch (Canada: April 2019; US: December 2019), we are seeing great results, growing faster than we have in any other market,” Murray says.
Buildxact is also experiencing very strong growth in Australia. The latest Residential Construction Activity Report July-September 2020 showed that Buildxact’s subscriber numbers rose by 21% in the third quarter. The data also shows that Buildxact’s customers, small residential builders, continue to see strong demand amidst the COVID-19 pandemic.
The $6 million capital raise, which follows Buildxact’s successful $8.5 million capital raise in December 2019, attracted strong support from Buildxact’s existing investors.
“Current investors saw the opportunities that Buildxact has in both ANZ and North America and have again supported the growth strategies of the company,” Murray says. “We didn’t have to go to any new investors, and we were oversubscribed, which is fantastic endorsement of the company.”