CutStruct, a Nigerian construction material procurement startup, raised $600,000 in a round led by Zedcrest Capital, DFS Lab and LoftyInc Capital. Angel investors that participated in the round included Kola Aina, Founding Partner of Ventures Platform, TechPoint said in its report.
Co-founders of the company, John Oamen and Tayo Odunsi, explained that from their experience in the real estate industry, getting the right material for construction at the right time and best price is a challenge. Their innovation is to use tech to save clients the time and effort.
Imagine reaching out to multiple vendors for the same material and repeating the process for other materials, this seems like a waste of time but it is the best way to aggregate prices. That is, until CutStruct’s attempt to simplify the process.
“What CutStruct has done is build a platform where we’ve onboarded all these people, and when you need anything, you just send a request for quotes (RFQ) on the platform, and everybody you choose gets it,” Oamen said in a statement.
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The platform aims to bring construction material vendors and contractors together. And, everything is automated as the vendors have their dashboards for prices and product specs, the platform collects the data and uses it to provide quotations to contractors based on their requests.
“You’ll receive the quotations in your portal, where you can sort by price and see vendors from the cheapest to the most expensive. You can also sort by delivery time and see the earliest to latest delivery,” the company’s co-founder explained.
To make money, CutStruct charges between 2% to 10% for transactions. However, it also offers goods-in-transit insurance.
The startup was founded in November 2021 and went through five iterations and began manually before going digital. It sees itself as more than just an eCommerce platform and hopes to disrupt the construction sector while eliminating the menace of middlemen.
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