SaaS construction procurement platform Constrafor opted to raise funding through SAFE notes rather than a priced equity round as the market is not "great today in terms of pricing."
CEO Anwar Ghauche raised $7.5M via SAFE note funding after witnessing "deterioration in the multiples for fintech companies."
- Ghauche said the firm expects to achieve between $5M to $10M in annual recurring revenue (ARR) before going for a Series A round.
- Constrafor will use the fresh funds for payroll and operations.
- Additionally,
the incoming funds will enable the firm to get its EarlyPay program
rated and open up its API to general contractor customers.
- Motive
Partners led the current round with participation from Fifth Wall,
FinTech Collective, Commerce Ventures, FJ Labs, and others.
- In addition, the firm availed an undisclosed credit facility from Apollo.
- Constrafor has 23,000 customers and is growing 25% MoM this year.
