Accel backs India home construction start-up
Accel and fellow US venture firm Celesta Capital have led a USD 10m round for India’s Brick&Bolt, a consumer-facing end-to-end home construction platform.
Accel and Celesta, which was known as WRVI Capital until May last year, both invested USD 2.4m and have each taken a 5.76% stake, according to AVCJ Research. It brings total funding to USD 16m since the company’s inception in 2018.
Brick&Bolt connects users with designers, architects, and construction professionals via a platform that facilitates 3D floor plans and mock-ups of electrical and plumbing installations. It also facilitates building materials procurement and project monitoring with staged payment options and a conditional five-year warranty.
Individuals, not construction companies, represent the bulk of the homebuilding materials market in India. However, there are few nationwide brands or comprehensive services in this space, leaving it relatively unorganised and fragmented.
“India is set to be the third largest construction market in the world by 2025. The Indian standalone homes market is ripe for tech-led disruption. With favourable market conditions and macro environment, Brick& Bolt is positioned to leverage this opportunity,” Mahendran Balachandran, a partner at Accel, said in a statement.
Brick&Bolt claims to use artificial intelligence to predict work schedules as well as computer vision to manage project quality and progress, although the service also includes regular on-site visits. In addition to residential, users can contract commercial and mixed residential-commercial properties. Features such as elevators are part of the offering.
The latest investment is billed as an extension of a USD 2.2m Series A round in 2020 provided by Foundamental, a US-based VC firm specialising in the construction industry. It will support an expansion into at least 12 cities during the next 15 months and add to the senior leadership team.
Other previous investors include Sequoia Capital’s Surge program, HDFC Capital, and Stride Ventures. Brick&Bolt has also received backing from entrepreneurs at local co-working space start-up IndiQube and Singapore-based home renovation start-up Livspace, as well as investors at Piramal Fund Management and Trifecta Capital.
Recent activity in this space includes The Carlyle Group investing in construction materials retailer Varmora. Meanwhile, HomeLane, which focuses on home design, received a USD 50m round in 2021 featuring Accel, Sequoia, and Stride, and last February, Livspace raised a USD 180m round led by KKR.
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