Materials Market, a UK-based digital marketplace for building materials, has raised £2M in a round led by Fuel Ventures, with participation from Active Partners and a group of angel investors.
The investment aims to accelerate the company's mission to modernise the UK's fragmented and inefficient building materials sector. The £2M will be used to enhance the platform's technology, expand the team, and explore new ways to connect customers and suppliers more efficiently. This move aligns with the government's target to build 1.5 million homes by the end of the current term.
The UK's building materials market is valued at approximately £40B but remains highly fragmented, with thousands of suppliers operating in localised areas and limited digital adoption. This lack of standardisation leads to opaque pricing, inefficiencies, and a cumbersome procurement process for buyers.
Additionally, the sector faces challenges such as high staff turnover and burnout in traditional call centres, long training cycles, and a lack of multilingual capabilities for global companies.
Materials Market's platform connects buyers directly with a network of over 750 supplier branches, with cutsomers ranging from DIY enthusiasts to large-scale contractors.
The UK construction sector has faced challenges such as input price inflation and a high building materials trade deficit, which reached over £14B in 2023. These factors underscore the necessity for innovation and efficiency in the supply chain.
Tom Profumo, Partner at Active Partners, commented: "The building materials market is highly fragmented and inefficient and has yet to experience the level of disruption seen in other industries through digitisation. Materials Market is changing that with its innovative approach and proprietary technology, seamlessly connecting buyers and suppliers through its online marketplace."
James Mackenzie, Non-Executive Director at Materials Market, added:
"The building materials sector is one of the last major industries to undergo true digital transformation. What Materials Market is doing - using technology to simplify and scale a highly fragmented supply chain - is exactly what the industry needs."
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