Munich-based startup Comstruct has announced a $12.5 million Series A funding round led by GV and 20VC, with existing investors Booom and Puzzle Ventures participating once again. The investment will fuel the company's mission to digitize the construction industry through its innovative procurement platform.

At its core, Comstruct is a software platform designed to streamline the procurement process of construction materials. The platform tackles the industry's analog inefficiencies, where materials orders are often placed over the phone, and invoices are manually reconciled. This outdated process can lead to errors, delays, and a lack of comprehensive data reporting.

Comstruct's co-founder and CEO, Henric Meinhardt, explained the platform's vision to TechCrunch, stating that the current procurement process is "very analog." He described how contractors typically deal with multiple suppliers, each with their own ordering and invoicing systems, resulting in a complex and time-consuming process. Comstruct aims to unify these processes, providing a single platform for contractors to interact with suppliers and manage documents.

To achieve this, Comstruct first approached general contractors to understand their materials sourcing needs. The startup then reached out to suppliers, asking how they could share data, whether through EDI interfaces, email, or customer portals. This information is then structured and integrated onto the platform using machine learning, enabling the seamless integration of multiple suppliers.

Over the last two years, Comstruct has successfully integrated an impressive 800 material suppliers onto its platform. The company initially focused on the Swiss market, where Meinhardt studied, and has since expanded to Germany, Austria, and other European countries, depending on construction project locations.

Comstruct's platform offers four modules: ordering, digital delivery receipts, invoice reconciliation, and ESG reporting. The startup employs a usage-based pricing strategy, charging a simple per-document fee. This approach is particularly relevant in the European market, where the Corporate Sustainability Reporting Directive requires companies to report on material usage in construction projects – a capability Comstruct's platform provides.

While Comstruct competes with other players in the market, such as Kojo in the U.S. and Qflow in the U.K., each competitor has a unique positioning. According to Meinhardt, Kojo focuses more on the procurement side, while Qflow emphasizes waste management.

Comstruct has already seen significant adoption, with large-scale construction sites using its platform to manage materials. Notable examples include several tunnel projects, a highway project in Stockholm, and a major train project in Munich. The Gotthard Tunnel project in Switzerland, for instance, relies on Comstruct to handle all delivery notes and link them to invoices.

The Series A funding will enable Comstruct to further expand its platform, driving digitization in the construction industry and promoting greater efficiency, transparency, and sustainability. As the industry continues to evolve, Comstruct is well-positioned to play a leading role in shaping its future.