Business providers tech hasn’t traditionally been thought of “attractive,” however the want for innovation within the house is gigantic.
That want has translated into a big fundraise for a corporation centered on streamlining industrial contracting processes. On Friday, BuildOps, which develops software program for industrial providers contractors, introduced that it has raised $127 million in a Collection C spherical led by Meritech Capital that values the corporate at $1 billion post-money.
That valuation is “greater than double” the valuation BuildOps reached in its final financing – a $50 million Series B round introduced in Might of 2023 and a follow-on “prime up” $36 million increase for present buyers solely, in accordance with Alok Chanani, co-founder and CEO. The newest capital infusion brings the corporate’s complete raised to over $250 million.
Based in 2018, Los Angeles-based BuildOps has constructed discipline service administration software program that helps industrial contractors within the U.S. and Canada with challenge administration, service, dispatching, and invoicing through what it describes as “AI-powered automation.” The corporate claims that its software program helps contractors together with HVAC, plumbing, mechanical and electrical, and hearth and life security improve effectivity, make fewer expensive errors, scale back downtime, and obtain greater profitability.
“I discuss to contractors every single day […] and so they’re busting their backs protecting our world working, however the deck’s stacked in opposition to them with brief staffs, skyrocketing prices, and tech that’s caught within the Stone Age,” Chanani advised TechCrunch in an interview.
Chanani, an Iraq Military veteran, beforehand based a industrial actual property group referred to as USA Business. Co-founder Neeraj Mittal previously was director of engineering at ServiceTitan. As for BuildOps’ third co-founder, Steve Chew, he did stints at Microsoft, Nextag, and Fundly.
Mittal is now not with the corporate, according to his LinkedIn.
BuildOps operates on a software-as-a-service (SaaS) mannequin with per-user pricing structured as a part of an annual contract. The corporate has over 1,000 industrial contractor clients, together with J.H. Kelly, Haynes Mechanical, Dynamic Techniques Inc., and Baker Electrical.
Chanini declined to disclose arduous income figures, however famous that for the reason that firm launched its platform in 2020, BuildOps has “grown exponentially,” surpassing “seven figures” in income within the first 12 months after which tripling that determine in 2021 and 2022. Income subsequently doubled in 2023 and 2024.
BuildOps just isn’t but worthwhile as it’s centered on “aggressive scaling and funding sooner or later,” in accordance with Chanini.
Trying forward, BuildOps plans to make use of the brand new capital to broaden its headcount and put money into merchandise and know-how improvement, notably its API structure. It’s additionally eyeing what Chanani described as “strategic acquisitions.”
At the moment, BuildOps has about 375 staff, up 50% in comparison with a 12 months in the past.
For Meritech Capital basic accomplice and co-founder Paul Madera, industrial providers is a “huge and significant phase of our economic system that has been woefully underserved by fashionable software program.”
“Alok and the BuildOps staff noticed this chance early and constructed probably the most full industrial providers working system within the trade,” stated Madera, who’s becoming a member of BuildOps’ board as a part of the financing. “What we hear from contractors massive and small is that BuildOps has accomplished nothing wanting reworking their enterprise operationally and financially. Most significantly, it permits them to raised serve their clients.”
He advised TechCrunch that his agency was additionally drawn to the truth that BuildOps is solely centered on the industrial sector.
“Each buyer […] does issues a bit in another way, which means the software program must be extremely configurable, like some other core system of document,” he stated. “BuildOps has nailed this steadiness of product depth, flexibility, and value in a very distinctive approach.”
Apparently, TechCrunch Editor-in-Chief Connie Loizos pegged BuildOps to be one among 2019’s most “notable younger startups” on this piece.
New backers Bond Capital and Schneider Electrical’s SE Ventures additionally participated in BuildOps’ Collection C spherical, in addition to present backers Fika Ventures, Next47, StepStone Group, and Titanium Ventures. Earlier buyers in BuildOps embody 01A (previously often known as O1 Advisors, based by former Twitter execs Dick Costolo and Adam Bain), Founders Fund, MetaPrio B Capital, 137 Ventures, and Liquid2.