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Project Suppliers Raises $1M Pre-Seed to Build AI Cash Flow Tools for Saudi Construction
The Saudi marketplace for construction and MEP supplies plans to turn data from nearly 600,000 quotation requests into financing and forecasting products.
Project Suppliers, a Saudi Arabian technology platform that connects buyers and suppliers in the construction industry, has closed a SAR 3.75 million pre-seed round, equal to $1 million. The money came from a group of angel investors whose names were not disclosed.
The company plans to use the funding to develop AI-powered cash flow management tools for contractors and suppliers, a move that would take it from marketplace into financial services.
What Project Suppliers Does
Project Suppliers focuses on construction and on MEP, the mechanical, electrical and plumbing work that makes up a large share of any building project. Contractors use the platform to send quotation requests to suppliers and to manage parts of their supply chain digitally, replacing a process that still runs largely on phone calls, messaging apps and spreadsheets.
The company says its database covers more than 12,000 suppliers and contractors, and that nearly 600,000 quotation requests have been submitted through the platform. The round was also covered by The SaaS News.
From Marketplace to Cash Flow
That volume of requests is the foundation for the next product. Every quotation records who is buying what, from whom, at what price and on what schedule. Project Suppliers intends to use that operational data to build intelligent financing and predictive analytics tools aimed at one of the industry's most persistent problems: liquidity.
Construction runs on long payment cycles. Contractors often pay for materials well before they are paid for the finished work, and suppliers extend credit without a clear view of when the money will arrive. Late payment moves down the chain and can stall projects. Tools that forecast cash needs and match financing to real purchasing activity could ease that pressure for the small and mid-sized firms that feel it most.
Co-founder and CEO Hossam Gaber described the Saudi market as an exceptional opportunity for technological and financial change in the sector.
Why It Matters
Saudi Arabia is in the middle of one of the largest building programs in the world, driven by Vision 2030 and its slate of giga-projects. That activity has made construction technology a growing area for startups in the Kingdom, especially those tackling procurement and financing.
The model Project Suppliers is pursuing has worked in other markets: start with a marketplace that captures transactions, then use the resulting data to offer credit and financial tools that banks have trouble underwriting on their own. A $1 million pre-seed is a modest sum, and the company still has to show that its quotation data can support reliable lending decisions. With a base of suppliers and contractors already on the platform, it starts that effort with a clear view of how money moves through the sector.