Construction, a $10 trillion industry (an amount expected to double in the next 20 years) tends to rely on manual labor, and has not seen the productivity increases that other sectors have, but that is being changed with innovations in construction tech. Paris-based FINALCAD, a digital transformation startup for the construction industry, has just raised €35 million in Series C funding in a round led by Draper Esprit, with participation from Cathay Innovation, Salesforce Ventures, Serena, Aster, and CapHorn Invest.
According to McKinsey, while productivity in construction has increased by 30% since 1995 in the UK and Germany, overall productivity in the construction sector has only increased by 7%. Adoption of new technologies has been very weak, with the industry still stuck using primarily manual and non-digital processes. Given the growing global population, and corresponding need for infrastructure and housing around the world, the need for more efficient construction practices is a pressing matter.
Founded in 2012, FINALCAD enables construction companies to improve their operational efficiency through a mobile digital platform. Construction engineers, site managers, architects and builders can work together through its mobile application, enabling collaboration across a wide variety of business processes, in the field and in the office. FINALCAD’s app is more than just a communication tool – it also allows users to work on blueprints, BIM models, tasks, quality and security checks, and track job progress. FINALCAD then data analysis to provide useful feedback and showcase good practices.
The startup has raised a total of €55 million to date, employs 170 people in 12 countries, and has supported more than 20,000 projects since its inception. The new round will enable the company to significantly accelerate its operations in Europe and Asia, invest in R&D, and hire 100 new people.
Jimmy Louchart, co-founder and CEO of FINALCAD, said: “When we raised our Series B round in 2016, we planned to make a significant step forward from a business-to-business model to a business-wide digital transformation model. This involved covering all the main activities of our industry: building, infrastructure, and energy. This pivot has been achieved and materialised by our winning major contracts in Europe and Asia. This Series C round will now allows us to fully deploy our strategy on a global scale. We are convinced that this unique approach is paying off and that the value we bring to our customers is the way to change the way we build. We want to help our customers have a strategic advantage in their competitive environment.”