Constrafor, a provider of tech and financial construction software solutions, has closed a $264m Series A funding round
The financing, comprising $14m in equity with a $250m credit facility, has been led by NFX on the equity side, and Wafra and Crestline Investors on the credit side.
Constrafor’s construction software is dedicated to tackling the industry’s most pressing challenges – tight margins, cash flow constraints, supply chain disruptions and labor shortages.
By strengthening relationships between subcontractors and general contractors, Constrafor’s innovative technology and financial solutions drive meaningful impact.
The Constrafor technology platform modernizes how contractors manage subcontractor relationships, transforming inefficient processes into a streamlined digital command center.
With integrated procurement tools, simplified invoicing, and the Discovery Network connecting contractors to a wide roster of subcontractors, the platform ensures efficient and organized subcontractor procurement and payment.
Construction software for subcontractors
To round-up the subcontractor administration process, Constrafor’s Prequal and its AI-powered Insurance CoPilot provide contractors with powerful solutions for streamlining insurance document management and automating full policy compliance reviews.
For subcontractors, Constrafor’s Early Pay Program (EPP) accelerates payments at competitive rates, easing cash flow pressures and eliminating lengthy payment cycles.
The soon-to-launch Subcontractor CFO Suite will offer advanced tools, such as project-based accounting, supplier management, and enhanced financial controls – redefining financial management for the construction sector.
Rewriting construction’s financial system
Anwar Ghauche, co-founder and CEO of Constrafor, said: “This Series A funding is testament to the critical need for Constrafor in the construction sector. We’re not just providing features or point solutions; we’re rewiring the construction industry’s financial operating system. With this investment, we’re poised to expand our reach and impact, helping more contractors build sustainable, profitable businesses.”
Douglas Reed, co-founder and CTO, added: “This funding allows us to scale our AI capabilities, giving clients access to advanced technology. It streamlines operations and creates new opportunities in an evolving industry.”
Pete Flint, partner at NFX, said: “We’ve seen first-hand how marketplaces like Trulia, Zillow and DoorDash can leverage network effects to become dominant players in their industries.
“Constrafor is exhibiting similar traits, rapidly building a platform that has the potential to become the de facto service by empowering contractors and streamlining payments and financing in the construction industry.”
