Construction Materials Tech Startup Raises $33M After Tripling Staff
The Agora platform announced it raised the new funding after a year in which it grew its revenue eight times over.
A tech startup that helps commercial construction clients obtain building materials is planning to expand its staff and invest more in research and development after securing a new round of funding.
The Agora platform said on Thursday that it had raised $33 million in Series B funding following a year in which it says it was able to triple the size of its team.
“Our cities are facing an affordability crisis,” Agora co-founder and CEO Maria Rioumine said in a statement. “Our mission at Agora is to make the built environment faster and more efficient to build. By modernizing the construction supply chain, we can dramatically reduce building costs and help make our cities more affordable and accessible to all.”
During a year when the prices of lumber, brick and other materials were highly volatile, Agora’s business boomed.
Revenues at the company grew approximately eight times over during the last year as Agora expanded throughout 30 states, the company said.
This growth was a big factor in attracting the latest investors, including Tiger Global, which led the round.
“We’re excited about Agora’s strong traction, incredible market opportunity, and proven track record of customer success,” John Curtius, partner at Tiger Global, said in the statement.
Other investors chipped in as well, including 8VC, DST, LeFrak, Tishman Speyer, Jerry Yang, Michael Ovitz and Kevin Hartz.
Agora offers services that are designed to help clients cut down on the time they spend processing purchase orders and managing construction materials.
The platform allows trade contractors to order and track these materials, communicate with people throughout their supply chains and replace tedious manual data entry processes.
Agora’s services are an alternative to some existing processes that have been largely automated or outsourced in other industries.
Trade contractors often still rely on manual processes when keeping track of their supply chains, Agora said. Breakdowns in communication, project delays and material waste sometimes result from these older processes, the company said.
Some of these breakdowns became particularly acute during the pandemic, when contractors tried to manage disrupted supply chains and unpredictable material prices.
The company worked within this environment to try to stabilize supply chains for their clients. The platform managed quotes from different vendors and helped lock in prices in advance. It also aimed to help clients shorten the ordering process, which can sometimes extend to several business days while contractors communicate back and forth with vendors.