Indonesia’s construction sector is experiencing rapid growth, fueled by residential and industrial projects, coupled with government-led infrastructure initiatives. However, the process of recruiting skilled labor remains time-consuming, often relying on personal networks and extensive recruitment efforts. Gravel, a Jakarta-based startup, aims to streamline this process and has recently secured $14 million in funding.
Investors in this funding round include New Enterprise Associate (NEA), Weili Tai (co-founder of Marvell Technology Group), Lip-Bu Tan (executive chairman of Cadence Design System), SMDV, East Ventures, and other strategic partners. Notably, NEA’s investment marks its first foray into Southeast Asia. While currently concentrating on the Indonesian market, Gravel has ambitious plans for international expansion utilizing the newly acquired funding.
Founded in 2019, Gravel initially served as an app connecting users with construction workers. The platform has evolved to encompass four main features: Gravel Construction for hiring daily construction workers, Gravel Borongan for lump sum contract-based construction, Gravel Maintenance for on-demand home repairs, and Gravel Material for ordering tools and materials.
Gravel reports an impressive 45x revenue growth between 2020 and 2022, with 1.7 million workers now registered on the platform. The startup has been involved in 6,000 projects across 20 Indonesian provinces, ranging from residential constructions to major undertakings like the LRT Jabadebek, Jakarta International Stadium, Pelni Hospital, and the Keong Man IMAX Theatre.
The co-founders of Gravel, Nicholas Sutardja (Chairman), and co-CEOs Georgi Ferdwindra Putra and Fredy Yanto, identified inefficiencies in the construction industry’s labor market and initiated Gravel to address these challenges. Gravel’s innovative approach utilizes a Personalized Job Feed, reducing the time spent matching users with service providers from weeks to minutes.
Before joining Gravel, workers undergo a screening process involving online tests, skill assessments, and periodic training sessions. Gravel ensures that daily construction workers receive payment within 24 hours after completing a project, enhancing financial resilience and work performance. Additional benefits for workers include access to continuous job opportunities, workshops, certificate training, loyalty programs, and health and well-being support.
For service providers, Gravel offers increased visibility to clients, access to a broader range of projects, efficient matching with potential clients, and integration into supply and demand chains. The platform also provides real-time project activity analysis, offering insights into construction progress, required manpower, and materials. Gravel’s future plans include the development of a predictive model for monitoring construction progress.
NEA partner and head of Asia, Carmen Chang, expressed excitement about Gravel’s potential to elevate Indonesia’s construction industry through technology, emphasizing the transformative impact the startup could have on the sector.
