Constrafor, a construction procurement company, goes SAFE route with new capital
- The general contractor then reimburses Constrafor for the invoice.Constrafor grabs $106M in equity, credit to finance construction subcontractorsThe company raised $106.3 million in equity and debt in 2022, and since then, Constrafor has grown from 15,000 customers to 23,000.
- Since then, the company tweaked its credit origination and is now growing at 25% month over month this year “in sustainable growth.”Constrafor also joined in on the AI trend by launching some initiatives using embedded generative AI related to automating manual reviews, for example, of insurance.
- This gives the company $14 million in equity and $100 million in debt raised since the company was founded in 2019.Anwar Ghauche, CEO of Constrafor.
- It also partnered with Stripe to offer a banking product and now has over 80 companies banking with them.Now Constrafor is back with another cash infusion of $7.5 million via a SAFE note, led by Motive Partners, that closed this month.
- Image Credits: ConstraforWhen asked why Constrafor went after a SAFE note versus a priced round, Ghauche said he didn’t think the market “was great today in terms of pricing.”“We’ve seen that deterioration in the multiples for fintech companies,” Ghauche added.
- “We found that this is a much better way for us to keep growing, hence our milestones on the revenue side for the Series A, so we’re targeting to cross $5 million ARR before we actually go for a Series A.
More construction projects are being started, but payments to contractors and their subcontractors continue to cause a bottleneck in the normal course of completing a project.Banks are more and mor [+3289 chars]