Buildnow Company Profile

Background

Overview

Buildnow, established in April 2022, is a Saudi Arabia-based fintech company specializing in providing "Build Now, Pay Later" (BNPL) solutions tailored for the construction industry. The company aims to bridge cash flow gaps for small and medium-sized enterprises (SMEs) by offering flexible credit terms to buyers and ensuring upfront payments to suppliers. This approach enhances financial resilience and operational efficiency within the construction supply chain.

Mission and Vision

Buildnow's mission is to empower SMEs in the construction sector by alleviating cash flow constraints through innovative financing solutions. The company's vision is to transform the construction supply chain by integrating advanced financial technologies, fostering growth, and promoting financial inclusivity among SMEs.

Industry Significance

In Saudi Arabia, the construction supply chain handles transactions worth approximately $42 billion annually. However, SMEs often face challenges due to limited credit availability and cash flow constraints. Buildnow addresses these issues by offering tailored credit solutions, thereby enhancing the financial stability and growth potential of SMEs in the construction industry.

Key Strategic Focus

Core Objectives

Financial Empowerment of SMEs: Provide SMEs with access to flexible credit terms, enabling them to manage cash flow effectively and pursue growth opportunities.

Supply Chain Efficiency: Ensure suppliers receive upfront payments, reducing financial uncertainties and fostering a more efficient supply chain.

Areas of Specialization

BNPL Solutions: Offering "Build Now, Pay Later" financing options specifically designed for the construction sector.

Credit Risk Assessment: Utilizing advanced digital tools to assess buyers' financial data, legal status, and market reputation for accurate credit risk evaluation.

Key Technologies Utilized

Digital Credit Management Platform: A proprietary platform that captures and analyzes critical data points to tailor credit terms for buyers and ensure timely payments to suppliers.

Primary Markets Targeted

Saudi Arabia: Focusing on the domestic construction industry, which is undergoing significant expansion aligned with Vision 2030 initiatives.

Middle East and North Africa (MENA) Region: Plans to expand services to other countries within the MENA region to support SMEs in the construction sector.

Financials and Funding

Funding History

March 2024: Secured $9.4 million in seed funding, comprising $6.5 million in equity and $2.9 million in debt financing. The round was co-led by Raed Ventures and Khwarizmi Ventures, with participation from Careem co-founder Abdulla Elyas.

February 2025: Raised an additional $9.7 million in funding led by STV and Arbah Capital, combining equity and debt financing to support further expansion.

Total Funds Raised

As of February 2025, Buildnow has raised a total of $19.1 million through equity and debt financing.

Notable Investors

Raed Ventures: A venture capital firm focusing on early-stage investments in the MENA region.

Khwarizmi Ventures: A corporate venture capital firm investing in technology-driven startups.

STV: A leading venture capital firm in the Middle East.

Arbah Capital: An investment firm providing strategic funding to innovative companies.

Abdulla Elyas: Co-founder of Careem and an angel investor in Buildnow.

Utilization of Capital

The funds raised are intended to:

Expand Operations: Enhance Buildnow's presence within Saudi Arabia and explore opportunities in the broader MENA region.

Technology Development: Invest in the advancement of the digital credit management platform to improve service offerings.

Talent Acquisition: Recruit world-class talent to drive innovation and operational excellence.

Pipeline Development

Key Pipeline Candidates

Expansion of BNPL Services: Developing and launching new financing products tailored to various segments within the construction industry.

Stages of Development

Product Enhancement: Continuous improvement of existing BNPL solutions based on user feedback and market demands.

Market Expansion: Strategic planning and execution to enter new markets within the MENA region.

Target Conditions

SME Financing Needs: Addressing the specific financial challenges faced by SMEs in the construction sector, including cash flow management and access to credit.

Timelines for Milestones

2025: Focus on consolidating market position in Saudi Arabia and initiating entry into select MENA markets.

2026 and Beyond: Full-scale expansion across the MENA region, offering a comprehensive suite of financing solutions for the construction industry.

Technological Platform and Innovation

Proprietary Technologies

Digital Credit Management Platform: A bespoke platform that digitally captures and analyzes data points such as financials, legal standing, and market reputation of buyers to assess credit risk accurately.

Significant Scientific Methods

Data Analytics: Utilizing advanced data analytics to evaluate creditworthiness and tailor financing solutions.

Machine Learning Algorithms: Implementing machine learning models to predict credit risk and optimize credit terms for buyers.

AI-Driven Capabilities

Automated Risk Assessment: Leveraging AI to automate the evaluation of credit risk, enhancing efficiency and accuracy.

Predictive Analytics: Using AI to forecast market trends and buyer behaviors, enabling proactive decision-making.

Leadership Team

Executive Profiles

Abdulla Sheikh, Co-Founder & Chief Executive Officer: Brings extensive experience in fintech and banking, leading Buildnow's strategic vision and growth initiatives.

Hisham Al Saleh, Co-Founder & Chief Financial Officer: Oversees financial operations, leveraging a background in finance and investment management.

Rahat Dewan, Co-Founder & Chief Technology Officer: Heads technology development, with expertise in software engineering and digital transformation.

Key Contributions

Strategic Leadership: The leadership team has successfully guided Buildnow through multiple funding rounds and rapid growth phases.

Innovation Drive: Spearheaded the development of the proprietary digital credit management platform, setting Buildnow apart in the fintech landscape.

Leadership Changes

As of March 2025, there have been no significant changes or appointments within Buildnow's leadership team.

Competitor Profile

Market Insights and Dynamics

Market Size: The construction industry in Saudi Arabia alone accounts for approximately $42 billion in annual transactions.

Growth Potential: The sector is experiencing rapid growth, driven by Vision 2030 initiatives and increased infrastructure projects.

Industry Trends: There is a growing demand for innovative financing solutions to support SMEs, highlighting the need for services like those offered by Buildnow.

Competitor Analysis

Lendmark Financial Services: A consumer finance company providing loan solutions, primarily focused on personal loans rather than industry-specific financing.

Prudential Assurance: Offers a range of financial services, including insurance and investment products, with limited focus on SME financing in the construction sector.

Enda Tamweel: A microfinance institution providing financial services to underserved populations, not specifically targeting the construction industry.

Elavon Europe: Specializes in payment solutions, lacking tailored financing products for construction SMEs.

Competitive Landscape

Buildnow differentiates itself by offering specialized BNPL solutions designed specifically for the construction industry, addressing the unique financial challenges faced by SMEs in this sector.

Strategic Collaborations and Partnerships

Significant Collaborations

Joa Capital: Partnered to launch the Joa Infrastructure Fund I, an $80 million fixed dividend trade finance fund aimed at addressing financial constraints in Saudi Arabia’s construction sector.

Impact of Partnerships

These collaborations enhance Buildnow's capacity to provide comprehensive financing solutions, leveraging