Salah Almnsoori has been at the helm of a construction enterprise in Saudi Arabia for over a decade and a half, supplying materials to the sector’s professionals. The challenge of connecting efficiently with a broad customer base in a sector boasting over 150,000 entities was a persistent obstacle, until BRKZ emerged on the scene. The 2022 inception of this start-up was a game-changer for Almnsoori, providing a streamlined connection between suppliers like him and contractors in need.
Ibrahim Manna, the brain behind BRKZ, announced the company’s recent procurement of an impressive $8 million in series A investment. Manna’s own experience with the complexities of sourcing contractors for personal construction work was the spark for this innovative platform. He recognized a mutual struggle for both suppliers and contractors within the disorganized value chain of Saudi Arabia’s construction sector; a problem BRKZ aims to solve.
Embracing digital technology, BRKZ has recruited roughly 350 suppliers, presenting a diverse selection of over 1,200 products. Contractors articulate their material requirements through the platform, prompting suppliers to respond with competitive pricing and terms. This system has been a boon for contractors like Mohammed Hussien, who appreciates the efficiency and ease BRKZ brings to procurement and negotiations.
BRKZ isn’t just a marketplace; it’s expanding its repertoire to include logistics and delivery management for suppliers needing such assistance. The platform’s ambition is to evolve into a comprehensive service provider, already venturing into financing options for eligible contractors, encapsulating the essence of a ‘one-stop-shop’ for construction needs.
The platform’s performance indicators are promising, with suppliers offering quotes totaling $170 million and a monthly growth rate exceeding 20%. BRKZ’s sustainability, however, hinges on its ability to attract more contractors and suppliers to achieve a pivotal mass. Contractors incur no charges to join, while suppliers remunerate with a fee upon securing orders.
The Middle Eastern and North African regions, currently with construction projects valued at $2.5 trillion, are ripe with potential. Yet, the global trend suggests that a select few digital platforms will eventually rise to the top. BRKZ’s success will depend on its competitive edge over counterparts like Masafh, Rentpeep.com, and Souq acwme.
With $13.55 million in funding thus far, including the recent series A round, BRKZ backers are confident. The investment round was led by entities such as 9900 and BECO Capital, complemented by participation from Aramco’s Waed Ventures and others. This funding not only reinforces BRKZ’s position but also aligns with Saudi Arabia’s Vision 2030, aiming to attract foreign investment and nurture a burgeoning construction industry.
At 9900, the sentiment is clear; the construction sector’s inefficiencies are ripe for disruption. With BRKZ’s procurement solution powered by technology, investors like managing partner Chris Corbishley are enthusiastic about the transformative potential of this platform.