Constrafor, a software provider for the construction industry, today announced the closing of its $264 million Series A funding round. This funding, comprising an equity component of $14 million and a $250 million credit facility, has been led by NFX on the equity side and Wafra and Crestline Investors on the credit side.
The funding will accelerate Constrafor’s ambitious growth plans and cement its leadership in construction finance technology. And Constrafor is dedicated to addressing the construction industry’s most pressing challenges: tight margins, cash flow constraints, supply chain disruptions, and labor shortages. By improving relationships between subcontractors and General Contractors (GCs), Constrafor’s innovative technology and financial solutions drive meaningful impact.
Constrafor’s technology platform modernizes how GCs manage subcontractor relationships, turning inefficient processes into a streamlined digital command center. And with integrated procurement tools, simplified invoicing, and the Discovery Network connecting GCs to a wide roster of subcontractors, this platform ensures efficient and organized subcontractor procurement and payment.
To round up the subcontractor administration process, Constrafor’s Prequal and its AI-based 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) is essential. And it accelerates payments at competitive rates, easing cash flow pressures and eliminating lengthy payment cycles.
The company’s soon-to-launch Subcontractor CFO Suite will offer advanced tools like project-based accounting, supplier management, and enhanced financial controls—redefining financial management for the construction sector.
KEY QUOTES:
“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.”
– Anwar Ghauche, CEO and Cofounder of Constrafor
“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.”
– Douglas Reed, CTO and Cofounder
“We’ve seen firsthand 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.”
– Pete Flint, Partner at NFX
“Given our extensive experience in real estate investment, we recognize how critical cash flow is for subcontractors. Constrafor’s innovative financing solutions address this need, enabling subcontractors to thrive in a competitive and capital-intensive industry. We are excited to support Constrafor’s mission to streamline cash flow management and empower the construction ecosystem.”
– Rahul Vaid, Lead Partner at Crestline
“Constrafor is reshaping the construction finance landscape. Its innovative financing tools, which are proving invaluable to contractors and subcontractors alike, are helping usher in a new paradigm in the industry. Wafra is delighted to support this ground-breaking operation.”
– Paul Steinberger, Managing Director at Wafra
