Los Angeles-based BuildOps, a software company focused on streamlining commercial contracting processes, has announced a significant $127 million Series C funding round led by Meritech Capital, valuing the company at $1 billion post-money. This valuation is more than double the valuation reached in its last financing, a $50 million Series B round announced in May 2023, and a follow-on "top up" $36 million raise for existing investors only.

The latest capital infusion brings the company's total raised to over $250 million. Founded in 2018, BuildOps has developed field service management software that helps commercial contractors in the U.S. and Canada with project management, service, dispatching, and invoicing via "AI-powered automation." The company claims that its software helps contractors, including HVAC, plumbing, mechanical and electrical, and fire and life safety, increase efficiency, make fewer costly mistakes, reduce downtime, and achieve higher profitability.

According to Alok Chanani, co-founder and CEO of BuildOps, the company's software is designed to address the significant challenges faced by commercial contractors, including short staffs, skyrocketing costs, and outdated technology. Chanani, an Iraq Army veteran, previously founded a commercial real estate group called USA Commercial. Co-founder Neeraj Mittal formerly was director of engineering at ServiceTitan, while the third co-founder, Steve Chew, has a background in Microsoft, Nextag, and Fundly.

BuildOps operates on a software-as-a-service (SaaS) model with per-user pricing structured as part of an annual contract. The company has over 1,000 commercial contractor customers, including J.H. Kelly, Haynes Mechanical, Dynamic Systems Inc., and Baker Electric. While Chanani declined to reveal hard revenue figures, he noted that since the company launched its platform in 2020, BuildOps has "grown exponentially," surpassing "seven figures" in revenue in the first year and then tripling that figure in 2021 and 2022. Revenue subsequently doubled in 2023 and 2024.

Despite its rapid growth, BuildOps is not yet profitable, as it is focused on "aggressive scaling and investment in the future." The company plans to use the new capital to expand its headcount and invest in products and technology development, particularly its API architecture. Additionally, BuildOps is eyeing "strategic acquisitions" to further enhance its offerings.

Meritech Capital general partner and co-founder Paul Madera, who is joining BuildOps' board as part of the financing, praised the company's focus on the commercial services sector, which he believes has been "woefully underserved by modern software." Madera noted that BuildOps has built the most complete commercial services operating system in the industry, which has transformed the business operations of its customers.

New backers Bond Capital and Schneider Electric's SE Ventures also participated in BuildOps' Series C round, as well as existing backers Fika Ventures, Next47, StepStone Group, and Titanium Ventures. Earlier investors in BuildOps include 01A (formerly known as O1 Advisors, founded by former Twitter execs Dick Costolo and Adam Bain), Founders Fund, MetaPrio B Capital, 137 Ventures, and Liquid2.

The significance of BuildOps' funding round extends beyond the company itself, as it highlights the growing recognition of the need for innovation in the commercial services tech space. As the company continues to scale and invest in its products and technology, it is likely to have a profound impact on the commercial contracting industry, driving efficiency, profitability, and customer satisfaction.