Construction Tech Firm Suppli Raises $3.1M in Seed Funding

Suppli, a construction tech company that provides account receivables services to construction suppliers, announced that it had raised $3.1 million in seed funding. Leading the round was Equal Ventures, with additional participation from Audacious Ventures, Dash Fund, Chase Gilbert (CEO of Built Technologies) and Ali Javid (CEO of Wrapbook).

The company claims that the construction materials industry sees $500 billion in sales annually but that many vendors in the space work off paper and spreadsheet powered processes or use software that isn’t designed for the specific needs of the industry.

“Currently, paying for construction materials requires, on average, more than 15 documents for each sale, it takes about 83 days to get paid in construction, and more than 40 percent of suppliers don’t offer online payment,” Suppli claims.

The company further says that its software provides such features as text-based payments, automated lien waiver requests, one-click deposits, full mobile-responsiveness and more. Suppli also has features for construction credit and finance professionals.

“We are 100 percent focused on material vendors which enables us to deliver these last mile features, build true integrations with industry ERPs and charge a simple flat fee similar to what most vendors pay for just basic payment processing today,” said Suppli co-founder Ryan Ayers in the press release. “With this investment, we’ll be able to significantly grow headcount, offer new services and accelerate product development.”

The founders say that they had run a material distributor in Texas where they observed the problems first-hand.

“Trade credit is the lifeblood of a material vendor but is often viewed as a ‘back office’ function,” said Supplr co-founder Thanasi Skafidas. “Suppli turns the credit relationship into a competitive advantage by making it convenient, seamless and less risky.”

Payments features include invoices and payments ordered by project; automated lien waivers; card, ACH, and check payments; and increased profits from customizable and compliant card convenience fees.

Communication tools include text and email options for reach customers, custom reminders and pay links for faster collections, and automation of basic collection tasks.

There is also ERP integration to ensure that payments get correctly applied and that customer data is always synced. Suppli claims that integration can take place in as little as two weeks.