Construction Marketplace ZippMat Raises $10 Mn From Matrix, Zephyr Peacock

Online construction marketplace ZippMat has raised $10 Mn in a mix of equity and debt as part of its seed funding round. The round was led by Matrix Partners India.

Zephyr Peacock participated in the equity round, while HDFC Bank and TradeCred participated in the debt funding round   

ZippMat will utilise the funds for product development, widening its user base, digitising the supply chain and expanding its team.

“We have seen significant tailwinds of digitisation and formalisation across MSMEs in the construction space. ZippMat, with its tech-led procurement and financing solutions, is enabling construction companies to grow faster,” said Sudipto Sannigrahi, principal at Matrix India.

Founded in 2021 by Abhijeet Kudva and Nandeesh Hasbi, the Bengaluru-based startup is a full-stack supply chain platform for the construction industry. It procures construction material for engineering and construction companies and delivers the material to the desired location. It claims to resolve three problems in the construction industry – project execution delays, increased project costs and access to working capital. 

“ZippMat provides a real-time collaborative tool for construction companies to plan and manage their supply deliveries transparently and cost-effectively. The company’s mission is to disrupt the entire supply chain and act as a one-stop shop for contractors and suppliers in the construction industry,” Kudva said. 

ZippMat manages the entire supply chain and delivery of construction materials. It further helps businesses track their delivery and manage multiple vendors at the same time, according to its website.

In 2021, ZippMat secured an undisclosed amount of investment from several angel investors –

Nikhil Jaisinghani and Bharat Jaisinghani from Polycab, Hardik Shah from TradeCred, Sagar Agarwal from Beams VC, Kettleborough VC, and Aditya Rao from Pennar Industries.

ZippMat said it offers services to more than 30 customers across 10 product categories. The startup currently delivers construction materials in 10 states in the country. ZippMat clocked an annual revenue of over INR 100 Cr in the fiscal year 2021, it said.

It competes with startups such as Infra.Market, Tracecost, BuildNext, and Kolo. 

According to a report, the Indian construction industry was pegged at $609.6 Bn in 2021, and is likely to grow at a CAGR of over 6% from 2023 to 2026.