Warsaw-based ProperGate raises €1 million to digitalise construction site logistics

Polish startup ProperGate has raised 1 million in its seed funding round. The company, whose software digitalises construction site logistics, plans to use the investment to expand its team and increase its pace of development.

Investors involved in the round include leading international investment funds SMOK Ventures (a Polish-American investor) and Realty Corporation Limited (from the UK). They are joined by a number of private investors with longstanding connections to the real estate industry – Stanislav Frnka (Partner at Cornerstone Partners), Grzegorz Strutyński (Country Manager for GTC SA), Paweł Wierzbicki (CEO of Schindler Polska) and Tomasz Trzósło (CEO of EPP).

“The acquired financing will allow ProperGate to expand its team and support faster development resulting from the growing needs of customers and partners,” said Rafał Grudzień, ProperGate’s CEO. “We are facing new challenges related to international expansion, product development, and integration with both suppliers of materials and of complementary technological solutions. Our new investors bring us not only financial capital, but also access to a global network of construction companies, along with valuable experience in cooperation on every continent.”

Founded in 2018, ProperGate’s cloud-based software optimises logistics on complex construction projects. Its strength lies in using technology to iron out the many inefficiencies in the flow of materials both along the supply chain and within construction sites themselves. It can be applied to everything from skyscrapers and residential buildings to logistics centres. The company has already teamed up with major players in the construction and property arena such as Skanska, Kajima Poland, BESIX Group, CFE, and 7R.

ProperGate’s founders are Rafał Grudzień (CEO), Anna Walkowska (CTO), and Robert Grudzień (CSO). Together they hold a deep understanding of the construction industry with expertise in technology and software development. This combination that has enabled them to bring new and innovative approaches to a largely conservative industry.

“I have known Ania for over 20 years. We started our adventure with startups together and I know what a determined person and a great CTO she is. Together with the Grudzień brothers, experienced in the construction industry, ProperGate has everything you need to completely revolutionize construction logistics. The company has created a product that meets the strict standards of the industry and I believe that in the coming years they will dominate the global market in their niche,” said Borys Musielak, Founding Partner of SMOK.vc

The property and construction are sectors are ripe for disruption in general. Many of dominant startups in the field were established and developed in the US, but numerous European solutions have risen to prominence of late, and ProperGate is one of them.

The startup states that profit margins in the construction industry are typically very tight (1.5& to 2% being quite normal), meaning it doesn’t take much to render a project unprofitable. Yet manual and semi-manual logistics processes are still common on many construction projects globally. They signal that the ground-level view is one of site management drowning in documents, e-mails and phone calls, trying to control orders and ensure deliveries go to plan.

By digitalising logistics, many of these problems can be eliminated, reducing costly delays, minimising risk, and maximising the chance of projects turning a profit. On top of this, CO2 is reduced, site safety improves, and all sorts of new, actionable data flows out.

Wiktor Karol Waligora, Partner and Co-Founder of Realty Corporation, commented: “We are thrilled to have invested in ProperGate, one of the most innovative and effective ConTech solutions in Europe. With its energetic team, ambitious growth strategy and established local presence in Poland, ProperGate is well-positioned to become a leading solution for major construction players in the CEE and internationally. The growing real estate development pipeline in ProperGate’s existing and key expansion markets, combined with the need for smarter and tech-enabled solution adapted to the current needs of construction companies, give us great comfort in this next stage of expansion and growth for ProperGate. We are delighted to support ProperGate with additional liquidity, market insights and robust real estate network to position the business for internationalization in the near future”.