AI startup raises £4.2m to tackle one of construction’s hidden cost
Prolo, an AI-powered procurement platform designed to support SME construction firms source materials, equipment, and hire at the best market rates, has secured £4.2 million in Seed funding.
The oversubscribed round was led by Triple Point Ventures and joined by a consortium of venture capital firms, including the a16z Scout Fund, Anamcara Capital, Concrete VC, Foundation Ventures, Haatch, Koro Capital, Love Ventures, and Portfolio Ventures. The funding will fuel the company’s focus on go-to-market sales and marketing efforts and accelerate new tech and product rollouts to ensure robust support for its growing base of SME contractor customers.
Procurement within the construction industry remains analogue and is ripe for disruption. Smaller contractors bear the brunt of industry inefficiencies, especially when compared with tier-1 giants, losing countless hours ringing around builders’ merchants for quotes and absorbing the costs of uncompetitive pricing. The Chartered Institute of Building notes that supply chain disruptions and manual workflows contribute to roughly 40% of projects suffering delays averaging five months.
Prolo eliminates this friction by acting as an outsourced, AI-powered procurement team. Site managers can use WhatsApp, email, or phone call to access Prolo’s team of AI and human experts, which scans a nationwide network of over 185 suppliers to offer them trade rates on orders like bulk materials and specialist plant hire, which are usually reserved for Tier 1 giants. Furthermore, Prolo offers flexible credit options for up to 90 days, counteracting standard industry payment terms, allowing customers to confidently take on larger projects that grow their margins.
Prolo was founded by James Morris-Manuel, a successful serial entrepreneur in PropTech, having previously founded the startup Virtual Walkthrough, building it into a European market leader before leading its successful acquisition by the spatial data giant Matterport. Following the exit, Morris-Manuel served as EMEA Managing Director at Matterport, establishing London as the company’s regional headquarters.
James Morris-Manuel, Founder and CEO of Prolo said: “For decades, SME contractors have been penalised by a lack of price transparency and inefficient ordering, often paying a premium simply because they lack the time and purchasing power of the Tier-1 giants. Through scaling Virtual Walkthrough and my time at Matterport, we learned how to build robust tech that solves very real, very painful operational bottlenecks for the built environment. With Prolo, we are entirely shifting the dynamic of construction supply chains. The demand we are seeing right out of the gate is phenomenal.”
Sam Stone, Investor at Triple Point Ventures: “Construction companies are vital to the UK economy, and they will play an increasingly important role as the country looks to accelerate the delivery of new housing and infrastructure. Procurement remains one of the most manual and margin-sensitive parts of running a construction business, and Prolo has a huge opportunity to change that. By using AI to help firms automate procurement, find the right products at the best prices, and improve their margins, Prolo is solving a real and urgent problem for the industry. We’re excited to be backing James, a repeat founder with a strong track record, as he builds a category-defining business in construction procurement.”
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