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Wednesday, January 27, 2016

Buildzar Raises $4 Million From Individual Investor Puneet Dalmia


Buildzar.com, Gurgaon-based consumer-Internet platform caters to individual home builders, apartment owners and small and medium sized builders and contractors, has received $4 million funding from individual investor Puneet Dalmia in pre-series A funding.

Offering end-to-end 'turnkey' solutions including design, labor services and materials, Buildzar.com aims to concretize its position as the de-facto platform for all home building related products and services by leveraging technology and offering productized solutions to its consumers, a press release said.

Talking about the venture, Vineet Singh, Co-Founder, CEO & MD, Buildzar.com said, "Building a home is perhaps the longest and highest value transaction in an individual's lifetime. The fact that the new age customer is younger, Internet-savvy, and is willing to pay for standardization and quality, makes this business even more exciting for us. Our vision is to give consumer the power to manage a complex thing like construction, using only their mobile phone."

About the latest round of funding, Puneet Dalmia, MD & CEO Dalmia Cement Bharat Ltd, said, "Buildzar.com is leading the market with little competition when it comes to the kind of services and product portfolio it provides. It has etched out a clear path to profitability on the back of its first mover advantage, an outstanding team, asset-light operations and a revenue-focused approach. With its promise of 100% guaranteed quality at best prices, and a strong consumer focus, Buildzar is pegged to resolve the pain points in the construction services industry in India through its unique O2O (online-to-offline) model."

Buildzar.com offers a comprehensive bouquet of products and services under two verticals: The Material Store - a marketplace having over 20,000 products related to civil, electrical, plumbing, paints, flooring, kitchen bathroom etc. and BuildMyHome - a curated platform for design and contracting services with over 70 contractors and architects on its platform.

In the $150 billion individual home construction market, 30,000 new houses are constructed every year in Delhi NCR itself, where the average cost of building a house ranges between INR 6 million - 100 million. The market, however, is largely fragmented and remains marred with basic issues of trust and quality.

Buildzar came up with several other innovations in its Material Store, offerings like organizing the entire store by budget, bundling of products as per construction stage into 'Combos', and selling the entire Bill of Materials (BOM) rather than selling individual SKUs. In the recently-launched BuildMyHome , Buildzar offers hassle-free building and renovation experience to the consumer by providing end-to-end design, supply and build solutions through qualified and professional service providers, standardized rates and service level agreements (SLAs), guaranteed-adherence to project cost and timelines, and warranties up to seven years.

The team is developing project management tool, through which a home builder can monitor all her construction-related metrics like cost-incurred, projected completion timelines, inventory etc. on a real-time basis and can also receive live feeds, alerts and updates on his project.

Buildzar is live on desktop and mobile through its Android and iOS app. It is already clocking 750-800 orders on a monthly basis since the beginning of its operations in September 2015, with steel and cement being the leading categories. With an integrated effort to scale higher margins through its turnkey solutions and acquire market share through full stack of products, Buildzar is poised to create an indisputable dominance in a market that has been barely tapped in the e-commerce domain.


While the company's current focus is on consolidating the business in the Delhi NCR region, which alone is valued at $9-10 billion, in the next 6 months it aims to expand their operations across southern markets starting with Bangalore, Chennai and Hyderabad.

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