Bogota, Colombia, July 26, 2023 – Licify, a groundbreaking Latin American procurement and financial software startup for the construction industry, announced today that it has successfully raised $3.4 million in a funding round led by Brick & Mortar Ventures and Accion Venture Lab. Notable investors including Dash Fund, G2 Momentum Capital, and Columbia University’s VC fund also participated in the round, and share Licify’s vision of bridging the gap between supply and demand in construction. This funding round marks Colombia-based Licify’s expansion to Mexico, representing another major growth milestone for the company.
Licify’s mission is to transform the construction supply chain by leveraging cutting-edge technology to provide accessible and inclusive digital solutions that connect builders and suppliers, and empower individuals and businesses. The company offers a range of innovative products and services that streamline procurement planning, bidding, billing, and payment conciliation, enhancing efficiency and driving economic growth.
Recently awarded the Proptech Latam award for the best Contech company in Latin America, Licify has gained recognition for its outstanding contribution to the industry. This achievement further highlights the company’s commitment to innovation and its role in revolutionizing regional construction practices.
According to recent studies, the cost of slow payments in the U.S. construction industry was valued at $208B in 2022. Latin America is no different. Traditional financial institutions need help to address the demands of this massive industry, particularly small businesses. Licify aims to bridge this gap by leveraging technology to offer user-friendly platforms and services that help these companies win more business and get paid faster once they do.
Fernando Olloqui, CEO of Licify, said: “At Licify, our mission is to empower and connect the construction industry in Latin America by providing them with world-class technology and inclusive financial services. This investment will enable us to scale our operations, enhance our technological capabilities, and expand our reach with our new operation in Mexico. We are thrilled to have Brick & Mortar Ventures, Accion Venture Lab, and our other esteemed investors join us on this journey as we revolutionize the construction industry in our region.”
“This is our first core investment in Latin America, a region poised for transformation and growth,” said Kaustubh Pandya, Partner at Brick & Mortar Ventures. “Licify has the potential to reshape the construction industry through better software and digital financial solutions. We are excited to partner with Licify as they continue to drive innovation and make a lasting impact.”
“As fintech investors, we have seen how hard it is to underwrite micro and small businesses in the construction industry given both their complex cashflow cycles and lack of digitization. Licify leverages its verticalized software to unlock financing and faster payments for thousands of subcontractors. We’re excited to work with the team as they expand across Latin America and close the financing gap in the construction industry,” said Amee Parbhoo, Managing Partner at Accion Venture Lab.
Licify’s previous funding rounds enabled the company to achieve over 17,000 clients in Colombia and facilitate over $2 billion in business between builders and its supply chain in the last two years. With this latest investment, Licify is well-positioned to further enhance its product offerings, develop strategic partnerships, and drive the adoption of its digital payments services.
About Licify
Licify is a leading provider of digital supply-chain management software and financial solutions tailored for the construction industry. Licify offers user-friendly solutions through its innovative platform that empowers construction companies and their supply chain, bridging the gap in new business opportunities and financial services. With a mission to drive inclusive growth, Licify leverages cutting-edge technology to provide seamless and secure transactions. For more information, visit www.licify.co.
About Brick & Mortar Ventures
Brick & Mortar Ventures is an early-stage venture fund focused on the Built World. Founded by Darren Bechtel, the firm invests in emerging companies developing innovative software and hardware solutions for the industries of architecture, engineering, construction, and facilities management. Notable past investments of the firm and its General Partner include Seed round participation in PlanGrid, BuildingConnected, BuildZoom, and Rhumbix, as well as early-stage investments in FieldWire and Levelset (formerly Zlien). Brick & Mortar Ventures is based in San Francisco, CA.
About Accion Venture Lab
Accion Venture Lab is a seed-stage investor that provides capital and extensive support to innovative fintech startups that improve the reach, quality, and affordability of financial services for the underserved and have the potential to scale. Backed by commercial and impact investors since the launch of its third-party fund in 2019, Venture Lab has invested in more than 60 early-stage startups that operate in 30 countries worldwide. Venture Lab is a part of Accion, a global nonprofit committed to creating a fair and inclusive economy, with a pioneering legacy in microfinance and fintech impact investing. Accion catalyzes financial service providers to deliver high-quality, affordable solutions at scale for the 1.8 billion people who are left out of – or poorly served by – the financial sector. For 60 years, Accion has helped tens of millions of people through our work with more than 170 partners in 55 countries. For further information, visit https://www.accion.org/venturelab.
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