When envisioning platforms in the construction sector, the sturdy concrete slabs crafted to support steel beams and towering pillars likely come to mind first. However, Munich-based startup Comstruct is aiming to create a different type of platform for the construction industry—one centered around software.
Fundamentally, Comstruct operates as a procurement platform specifically for construction materials. For large-scale projects, the process of ordering materials can be protracted, as many suppliers still resort to printing delivery notes and invoices. Orders are frequently placed via phone, creating challenges when it comes to reconciling invoices and compiling thorough data reports.
Recently, the startup announced a funding round of €12.5 million (approximately $13 million at current exchange rates), led by GV and 20VC, with existing investors Booom and Puzzle Ventures participating once more.
“Currently, the material procurement process in construction is predominantly analog. You might call to order 10 cubic meters for delivery next Thursday, and then receive a physical delivery note on-site that is manually entered into an Excel sheet,” explained Comstruct’s co-founder and CEO Henric Meinhardt to TechCrunch. “Sometimes, these notes are then mailed to the headquarters, where invoices are manually compared to receipts.”
While each materials supplier could develop their own app to manage orders, the reality is that contractors prefer not to juggle multiple apps just to access documentation. This is where Comstruct’s platform offers a solution by unifying these disparate processes.
Initially, Comstruct reaches out to general contractors to understand their material procurement practices, as they typically collaborate with a multitude of suppliers depending on both the construction site’s location and distinct requirements.
“We engage with these material suppliers to figure out how they can share their data. Do they have an EDI interface? Is there an email address through which information can be sent? Do they maintain a customer portal that we can scrape data from? We then organize the information accordingly,” Meinhardt elaborated.
The startup employs machine learning technology to integrate each supplier onto its platform. “Thanks to this technical innovation, we’ve successfully onboarded 800 material suppliers in the past two years, which is quite a significant achievement,” Meinhardt noted.
Comstruct has also built four modules focused on ordering, digital delivery receipts, invoice reconciliation, and ESG reporting on top of this data layer. The company adopts a usage-based pricing strategy driven by a straightforward per-document fee structure.
“With the [Corporate Sustainability Reporting Directive] being implemented in Europe, contractors are required to report on the volume of materials utilized in construction projects. Until now, they lacked visibility into how much concrete was being consumed […] a metric they previously did not have,” Meinhardt pointed out.
Comstruct finds itself in competition with Kojo in the United States and Qflow in the U.K; however, each competitor serves a unique niche. According to Meinhardt, Kojo “places a stronger emphasis on the procurement aspect,” while Qflow “focuses heavily on waste management.”
The company initially launched its operations in Switzerland, influenced by Meinhardt’s studies in the region. Comstruct claims to have established an impressive foothold in the Swiss materials industry, boasting 70% to 80% of requested suppliers already on its platform. The company is now extending its reach to Germany, Austria, and other European nations based on upcoming construction initiatives.
Comstruct has already been utilized on several large-scale projects, including various tunneling endeavors, a significant highway construction in Stockholm, and a major rail project in Munich. For example, the Gotthard Tunnel project in Switzerland (illustrated below) relies on Comstruct to manage all delivery notes and correlate them with invoices.
Compiled by Techarena.au.
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