**Tokyo**: The procurement service Ballas has successfully completed a ¥1.84 billion Series A funding round, enabling advancements in construction processes. The company aims to enhance efficiency and quality in supply chains, driven by data and technology, while expanding its offerings significantly by 2024.
On April 2, the construction materials procurement service “BALLAS” announced the successful completion of a funding round, raising a total of 1.84 billion yen in Series A funding. This funding consists of 1.16 billion yen secured through equity fundraising, alongside 680 million yen obtained through loans. Key financial institutions participating in this loan arrangement include Aozora Corporate Investment, Kyoto Bank, Shizuoka Bank, Shoko Chukin Bank, and Hokkoku Bank. The Series A funding round included a third-party allocation of shares that took place in March 2023, with Global Brain and SBI Investment acting as joint lead investors.
Established against the backdrop of declining labour force numbers leading to a shortage of supply within the construction sector, BALLAS aims to utilise data to drive effective design processes and deliver construction materials with high QCD (Quality, Cost, Delivery) standards. The company’s procurement system, officially launched in September 2022, is tailored to assist construction firms in sourcing customised construction materials. This system streamlines purchasing operations that have traditionally hindered productivity, which include tasks such as drafting materials and negotiating with manufacturers.
With the BALLAS platform, construction companies can place bulk orders for various materials directly from construction sites via smartphones while enabling real-time tracking of orders with team collaboration. The service has been well-received for ensuring materials are delivered with optimal quality, competitive pricing, and timely schedules. By the end of August 2022, BALLAS had already surpassed 1,000 types of materials available for supply, expanding its focus primarily on metallic components essential for both interior and exterior constructions, as well as related equipment.
According to company projections, in the fiscal year ending December 2024—its third operational year—BALLAS expects to achieve a threefold increase in revenues compared to the previous year, and a fourfold increase in gross profits, with the number of delivered materials projected to reach 3,500.
Furthermore, by the end of 2024, BALLAS plans to acquire a construction business licence in accordance with Article 3 of the Construction Business Act, establishing a framework for handling a broader range of design, production, and execution data. The company is set to incorporate communication functionality based on drawings, the common language of the manufacturing industry, into its database, which aims to prevent information fragmentation. Enhancements to its artificial intelligence capabilities will support supply chain management driven by previously unmanageable data levels, thereby striving for further mass customisation in its offerings.
Source: Noah Wire Services
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