SAN FRANCISCO — Kojo – which operates a materials management platform for the construction industry – has completed a $39 million Series C funding round led by Battery Ventures with participation from new investors Schneider Electric, RXR, and Bienville Capital. Existing investors including 8VC, Suffolk Construction, Human Capital, AME, and BoxGroup also participated in the round.
Michael Brown, general partner at Battery Ventures, is joining Kojo’s board of directors.
“Our mission is to make it faster, easier, and more sustainable to build the world around us.” said Maria Rioumine, CEO and Founder of Kojo. “Supply chain disruptions and inflation have made it incredibly challenging to keep projects on-time and on-budget. With this new round of funding, we’re excited to continue building best-in-class products that help contractors all over the U.S. save money, increase their productivity, and become more resilient.”
The $800 billion a year commercial construction industry is facing more volatility than ever with soaring construction costs, material and labor shortages, and supply chain constraints. Too many contractors today lack control and visibility over their supply chains, and critical projects are slowed down by error-prone and manual materials ordering processes.
Kojo’s software brings field, office, warehouse, and vendor teams onto a single platform, making it easy for contractors to manage their materials needs from project takeoff to closeout.
To date, Kojo has powered the construction of nearly 10,000 projects, including hospitals, schools, and multi-family housing projects, across 46 states. Despite the recent economic slowdown, Kojo says it has grown annual recurring revenue 3.5x year over year and expanded to serve all major construction trades. In the last 18 months, Kojo has seen a 12x increase in users and saved customers more than $19 million on their materials orders.
Alongside the new round of funding, Kojo is launching new products to further streamline payments and project spend management. Contractors will be able to reconcile their invoices and pay for materials directly on Kojo’s platform, allowing them to accurately track project spend. With new distributor integrations, contractors will also be able to directly see distributor pricing and inventory to make the best buying decisions.
“At Battery, we’re focused on investing in entrepreneurs building industry-transforming companies,” said Michael Brown, general partner at Battery Ventures. “The construction industry has been underserved by technology for far too long, and that’s led to huge challenges over the past few years. We’re thrilled to be partnering with Kojo to change that and bring much needed software and financial services to commercial trade contractors.”
