The construction industry in Indonesia is large and growing rapidly, but a lot of supply procurement is still done the old-fashioned way, through phone calls and text messages. Juragan Material wants to make things easier with a B2B marketplace for building materials from curated suppliers.
The company announced today that it has raised $4 million in seed funding led by Go-Ventures, with participation from Susquehanna International Group (SIG).
The new capital will be used for recruitment, increased market share of Juragan Materials and technology enhancements.
Established in 2021, the company’s marketplace currently has more than 9,000 products and more than 180 brands, including structural, architectural, mechanical and electrical products. It is intended for use by contractors and project owners, and helps them obtain materials more quickly.
Prior to launching Juragan Materials, Tito Putra, CEO and Co-Founder, was the Managing Director of a building contracting company.
All other startup founders also have experience working in the construction industry. Griscilla Pottery, COO, was a product partner at Amazon and worked on the growth of a construction contracting company. Chief Marketing Officer, Ricky Fernando, previously worked in Marketing and Relations where Mortendo, mortar producer, and Chief Procurement Officer Michael Sorga worked, was an architect and residential products contractor for over 15 years.
Putra said it often takes days for him to get a single item, including the time he spends checking multiple vendors for prices and availability.
Also deal with untrackable deliveries that arrived late, offline payments and bills that were long and frustrating. This has resulted in higher working capital costs and potential losses due to excess inventories and over or under supply.
Juragan Materials was created to simplify the last stage of the supply chain for the construction industry.
“We realized that construction is a huge market that is still very traditional and untapped with technology, which leads to a lot of inefficiencies in the industry,” Putra said.
Putra added that Juragan Materials’ new capital will be used to improve its platform, launch more features, expand customer and vendor acquisition, and strengthen supporting infrastructure, particularly finance and logistics.