Can Ecosystem Development Propel Construction Tech Startups in LatAm?
The digital transformation wave has swept across various sectors, yet the construction industry has remained largely untouched by its disruptive tide. However, amidst this inertia, startups are emerging as pioneers, aiming to usher in a new era of innovation in construction, particularly in regions like Latin America.
In Latin America, where infrastructure struggles to meet the demands of its growing population, and outdated practices still prevail, startups like Nuqlea are charting a different course. Nuqlea, an Argentine startup, offers Nuqlea Studio, a B2B platform serving as both a marketplace and procurement portal for construction companies. Its vision is to create an ecosystem of partners that streamlines procurement processes and accelerates construction projects.
The potential for construction tech to revolutionize the industry in Latin America is immense. According to the development bank of Latin America and the Caribbean (CAF), millions of people in the region live in inadequate and informal housing. Despite this pressing need, the construction sector remains fragmented, with productivity stagnating.
Nuqlea adopts a capital-light model, a strategic choice given the current investment landscape in Latin America. With capital availability declining since 2021, startups are navigating a challenging funding environment. While construction tech startups globally raised billions in funding last year, Latin American companies received only a fraction of this amount.
Despite these challenges, Nuqlea secured funding twice, including a recent $750,000 extension led by Foundamental, a construction-focused VC firm. Foundamental’s commitment underscores its dedication to supporting early-stage construction tech startups and expanding into emerging regions like Latin America.
The infusion of capital will fuel Nuqlea’s expansion plans, starting with Brazil and Mexico, followed by Colombia. Leveraging partnerships with builders, manufacturers, logistics firms, and financial entities, Nuqlea aims to establish a robust presence across these markets.
Nuqlea’s approach emphasizes collaboration and ecosystem-building. While its executives lack direct construction industry experience, they bring a fresh perspective to the table. Nuqlea’s CEO, Gaston Remy, positions himself as an outsider, leveraging this perspective to unite stakeholders under a common transformative vision.
Since its inception, Nuqlea has onboarded around 50 construction companies and cooperatives, signaling early success in its ecosystem-building efforts. As it forges ahead, Nuqlea aims to harness the power of financial firms to safeguard stakeholders against inflation while staying true to its mission of fostering unity across the construction sector.
In a landscape ripe for innovation, Nuqlea and other construction tech startups in Latin America are poised to reshape the industry’s future, driven by collaboration, innovation, and a shared vision of transformation.
Image Credits: Nuqlea
“We believe that Nuqlea has evolved into more than just a B2B marketplace. It has devised a software-enabled approach that empowers manufacturers and distributors to establish their own white-labeled channels, while providing customers with the seamless experience of a comprehensive procurement platform,” stated Foundamental in a testimonial.
Nuqlea is also integrating AI into various aspects of its operations, from enhancing product matching and projections to coding. However, unlike some founders, Remy chose to underplay this aspect, emphasizing the company’s role as an ecosystem and facilitator instead. “While we possess powerful technological tools, our primary focus lies in being a platform where stakeholders collaborate, with us serving as the connector. Technology serves as a means to achieve our objectives, not an end in itself.”
Indeed, Remy’s enthusiasm peaks when discussing Nuqlea’s social impact. While construction tech may not seem as overtly impactful as the large-scale food aid program he led during the pandemic, it remains a priority for the CEO. He takes pride in Nuqlea’s involvement in social housing initiatives.
Beyond social housing, Remy recognizes Latin America’s infrastructure needs and sees construction tech as a catalyst for faster development. Moreover, he believes that bringing digital transformation to the construction sector benefits society as a whole, as inefficiencies in the traditional value chain ultimately burden consumers.
Considering sustainability objectives, it becomes evident how construction tech can deliver both financial returns and societal benefits. The hope is that it will indeed fulfill its potential.