Indonesia’s construction sector is experiencing rapid growth, fueled by residential and industrial projects as well as government-led infrastructure initiatives. Despite this surge, the industry faces challenges in efficiently sourcing skilled labor, often relying on personal networks and lengthy recruitment processes. Gravel, a Jakarta-based startup, aims to streamline this process, and it announced today that it has successfully raised $14 million in funding.
The funding round was led by New Enterprise Associate (NEA) and included notable investors such as Weili Tai, co-founder of Marvell Technology Group, Lip-Bu Tan, executive chairman of Cadence Design System, SMDV, East Ventures, and other strategic backers. This marks NEA’s first investment in Southeast Asia, emphasizing the potential impact of Gravel on the region’s construction landscape. While currently focused on Indonesia, Gravel plans to leverage the funding for international expansion.
Founded in 2019, Gravel initially started as an app connecting users with construction workers. Over time, it has evolved into a comprehensive platform with four main features: Gravel Construction for hiring daily workers, Gravel Borongan for lump sum contract projects, Gravel Maintenance for on-demand home repairs, and Gravel Material for ordering tools and materials.
Gravel reports impressive growth, with a 45x revenue increase between 2020 and 2022 and a user base of 1.7 million workers. The platform has been utilized for 6,000 projects across 20 Indonesian provinces, ranging from residential construction to significant infrastructure developments like LRT Jabadebek, Jakarta International Stadium, Pelni Hospital, and the Keong Man IMAX Theatre.
The co-founders of Gravel, including chairman Nicholas Sutardja and co-CEOs Georgi Ferdwindra Putra and Fredy Yanto, identified the inefficiencies in the construction labor market and sought to address them. Gravel’s personalized job feed efficiently matches users with service providers, reducing the time spent on recruitment from weeks to minutes.
Skilled labor on Gravel undergoes a thorough screening process, including online tests, skill assessments, and periodic training sessions. The platform ensures quick payment for daily construction workers within 24 hours of project completion, enhancing their financial resilience and performance.
Beyond facilitating transactions, Gravel provides real-time project analysis, offering insights into the construction’s current stage, required workforce, and materials. Future plans for the platform 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. With the newly secured funding, Gravel is poised to play a pivotal role in transforming and modernizing Southeast Asia’s construction landscape.
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