If you’re shopping for new flooring on BuildDirect, you can’t run your hands along the wood grain, but you may save some money.
The Canadian company, which challenges brick-and-mortar chains like Home Depot, Lowe’s, and Menards with its online-only home improvement store, has secured a sizable investment to continue its recent growth and push further into the consumer market.
BuildDirect has raised $30 million CAD (about $27.3 million USD) in its second institutional funding round, the company announced today. It will use the cash to scale up the team — from 175 people now to more than 400 by the end of the year — and add about 20 new product categories to the site.
Founded in 1999 by a former builder, the Vancouver-based company works directly with over 130 manufacturers and posts about $100 million in annual sales. The key to its business is its predictive analytics, which enables the company to predict what customers want and when they want it, a spokesperson told VentureBeat. Data also helps the company streamline the “fragmented and inefficient” home improvement product supply chain, minimizing shipping distances and driving down prices with bids from a network of carriers.
BuildDirect has seen 100 percent customer growth since last year, according to a company representative. Around 85 percent of its customers are in the U.S., while the remainder are in Canada. The company sells to contractors and do-it-yourself customers, with an average order size of over $2,000 that weighs around 1,500 pounds.
Venture capital firm Mohr Davidow Ventures led the $27.3 million funding round in BuildDirect. BDC Venture Capital also participated.