Introduction to BuildOps

Historically, commercial services technology has not been considered a particularly exciting field, but the need for innovation in this area is substantial.

This need has resulted in a significant fundraising effort for a company focused on simplifying commercial contracting processes. On Friday, BuildOps, a developer of software for commercial services contractors, announced that it has secured $127 million in a Series C funding round led by Meritech Capital, valuing the company at $1 billion post-money.

Funding and Valuation

This valuation is more than double the valuation BuildOps achieved in its previous financing round – a $50 million Series B round announced in May 2023, followed by a $36 million “top-up” raise for existing investors only, according to Alok Chanani, co-founder and CEO. The latest capital injection brings the company’s total raised to over $250 million.

Company Overview

Founded in 2018, Los Angeles-based BuildOps has developed field service management software that assists commercial contractors in the U.S. and Canada with project management, service, dispatching, and invoicing via AI-powered automation. The company claims that its software helps contractors, including those in HVAC, plumbing, mechanical and electrical, and fire and life safety, increase efficiency, reduce costly mistakes, minimize downtime, and achieve higher profitability.

Founder’s Perspective

“I speak with contractors daily, and they’re working hard to keep our world running, but the odds are against them due to short staffs, skyrocketing costs, and outdated technology,” Chanani told TechCrunch in an interview.

Chanani, an Iraq Army veteran, previously founded a commercial real estate group called USA Commercial. Co-founder Neeraj Mittal formerly served as director of engineering at ServiceTitan. The company’s third co-founder, Steve Chew, has worked at Microsoft, Nextag, and Fundly.

Mittal is no longer with the company, according to his LinkedIn profile.

Business Model and Customers

BuildOps operates on a software-as-a-service (SaaS) model with per-user pricing structured as part of an annual contract. The company has over 1,000 commercial contractor customers, including J.H. Kelly, Haynes Mechanical, Dynamic Systems Inc., and Baker Electric.

Chanani declined to disclose specific revenue figures but noted that since the company launched its platform in 2020, BuildOps has experienced exponential growth, surpassing seven figures in revenue in the first year and then tripling that figure in 2021 and 2022. Revenue subsequently doubled in 2023 and 2024.

BuildOps is not yet profitable, as it is focused on aggressive scaling and investment in the future, according to Chanani.

Future Plans

Looking ahead, BuildOps plans to utilize the new capital to expand its headcount and invest in product and technology development, particularly its API architecture. The company is also exploring strategic acquisitions.

Currently, BuildOps has approximately 375 employees, representing a 50% increase compared to a year ago.

Investor Perspective

For Meritech Capital general partner and co-founder Paul Madera, commercial services represent a massive and critical segment of the economy that has been underserved by modern software.

“Alok and the BuildOps team identified this opportunity early and built the most complete commercial services operating system in the industry,” said Madera, who is joining BuildOps’ board as part of the financing. “What we hear from contractors large and small is that BuildOps has transformed their business operationally and financially, enabling them to better serve their customers.”

Madera also stated that his firm was drawn to the fact that BuildOps is exclusively focused on the commercial sector.

“Every customer has unique needs, meaning the software must be highly configurable, like any other core system of record,” he said. “BuildOps has achieved a unique balance of product depth, flexibility, and usability.”

Additional Investors and Recognition

Interestingly, TechCrunch Editor-in-Chief Connie Loizos identified BuildOps as one of 2019’s most notable young startups in this piece.

New investors Bond Capital and Schneider Electric’s SE Ventures also participated in BuildOps’ Series C round, alongside existing backers Fika Ventures, Next47, StepStone Group, and Titanium Ventures. Earlier investors in BuildOps include 01A (formerly known as O1 Advisors, founded by former Twitter executives Dick Costolo and Adam Bain), Founders Fund, MetaPrio B Capital, 137 Ventures, and Liquid2.