Constrafor is a vertically integrated supply chain finance and risk management platform for the construction industry. Its platform modernizes how general contractors manage subcontractor relationships with integrated procurement tools, simplified invoicing, a Discovery Network for sourcing subcontractors, Prequal, and an AI-powered Insurance CoPilot for insurance document management and compliance reviews. For subcontractors it offers an Early Pay Program (EPP) that accelerates payments at competitive rates to ease cash flow pressures. The company plans to launch a Subcontractor CFO Suite providing project-based accounting, supplier management, and enhanced financial controls. Constrafor is scaling its AI capabilities and financial products to strengthen subcontractor–GC relationships and streamline payments and financing. Financially, it completed a $264 million Series A comprised of $14 million in equity and a $250 million credit facility to accelerate growth and cement its leadership in construction finance technology. Constrafor operates a SaaS procurement platform that embeds financing via its Early Pay Program, which assumes subcontractor invoice risk and frees up subcontractor cash flow while the general contractor later reimburses Constrafor. The company has added embedded generative AI initiatives to automate manual reviews (for example, insurance) and partnered with Stripe to offer a banking product; over 80 companies now bank through that offering. Constrafor grew from 15,000 to 23,000 customers and reports 25% month-over-month growth this year after tweaking its credit origination following a revenue hiccup. The company says it can lower prices to customers due to favorable financing and plans to get its EarlyPay program rated and open its APIs to general contractor customers and other construction startups. Financially, Constrafor previously raised $106.3 million in equity and debt in 2022 and reports $14 million in equity and $100 million in debt raised since its 2019 founding. Management is targeting to cross $5 million ARR before pursuing a Series A (with $10 million ARR as a preferable milestone). Constrafor is a New York-based SaaS platform that streamlines subcontractor procurement and administration for general contractors, covering contracts, COIs, invoices, payments and diversity procurement in a single system. For subcontractors it offers an Early Pay Program (EPP), a receivables financing service that lets approved invoices be paid within 24 to 48 hours and can improve cash flows by up to 80 days. The platform integrates with contractors' existing accounting programs, ERP systems and project management tools. Led by CEO Anwar Ghauche, the company plans to use new funding to build out additional functionalities and expand its subcontractor invoice finance offering. Financially, Constrafor announced a $100M+ Seed financing and has secured a credit facility from CoVenture.

Total raised

$372M

Funding rounds

5

Latest round

Series A

Latest activity

Nov 2024