Potentia joins round for Australia construction tender platform

Saniel Ventures, a specialist in construction sector software, also participated. Saniel is headed by Leigh Jasper, a co-founder of Aconex, a Sydney-listed technology platform provider for managing construction projects.

The investment represents a strategic expansion into growth investment for Potentia, which was set up by Andrew Gray – formerly of Archer Capital and Francisco Partners – to pursue buyouts in Australia’s midcap technology space. Potentia and Jasper are reportedly taking a combined 37% stake in EstimateOne.

“It has really good processes, great people, and it’s based on a compelling vision and culture,” Tim Reed, a managing director at Potentia and formerly CEO of MYOB, told The Australia Financial Review, adding that he hoped the deal would be the first of many minority investments. “It’s capable of handling 10 times growth in the years ahead.”

EstimateOne connects commercial builders, suppliers, and subcontractors, allowing them to browse construction tenders on an open noticeboard, download project documents, and upload quotes. It is also available in New Zealand, the Philippines, Ireland, and the UK.

The company claims to have seen more than 70,000 projects tendered and handled more than 7.6 million architectural documents since its inception in 2010. Around 40,000 organisations have used the platform in the past 12 months alone, tending around 7,500 projects worth AUD 52bn. Annual recurring revenue is said to exceed AUD 10m, 98% of which comes from Australia.

The fresh capital will be used to hire staff and expand the product offering by integrating a suite of connected procurement workflows into the platform while pursuing an international expansion, the company said in a social media post. This will include doubling down on the UK, Ireland, and New Zealand, as well as a push into new markets in Southeast Asia and North America.

Potentia distinguishes itself as arguably the only technology-focused private equity firm in Australia. It closed its debut fund in January last year with AUD 382m in commitments.

The firm’s mandate is to challenge foreign buyers that have traditionally dominated domestic middle-market deals in areas such as data science, regulatory compliance technology, and business-to-business software. It also claims expertise in marketplaces, quantum computing and infrastructure related to big data plays such as the internet-of-things.

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• Topics
• Australasia
• Industrials
• Support services
• Expansion
• Australia
• Potentia Capital
• TMT
• SME