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ICONSTRUCT

Building materials at your fingertips

COMPANY DETAILS

iConsruct is a B2B marketplace that connects suppliers and contractors in the construction industry through one single platform. Our aim is to digitize the supply chain of building materials and disrupt the conventional way of buying and selling building materials.

 

iConstruct figures:

  • Launched in July 2019, iConstruct has grown up to 35x in revenue in a year
  • Started the business with a capital of RM 23,000 , iConstruct had successfully transacted RM 2.4 million in revenue in just 11 months of operation
  • iConstruct's current monthly revenue had surpassed over RM 500,000 having over 70 contractors transacting through its platform

 

PROBLEM

 

  1. Contractors face a hassle to source for cheap building materials from multiple suppliers
  • Contractors will need to make countless trips and compare prices from suppliers before purchasing a material
  • As there are different types of materials being used in a project, contractors will have to deal with a lot of suppliers

 

       2.  Materials arriving late increases construction cost and causes project delay

  • Time is money in construction because it includes cost of workers per day + rental machinery
  • Materials arriving late is common at a construction site and this will cause a slow progress and project delay
  • Contractors do not have real time data information on their material delivery
  • Slow progress and project delay = increase in construction cost

 

 
SOLUTION
  1. Easy source
  • Contractors can now source for building materials and compare prices from multiple suppliers via online
  • Contractors can save their time as they do not need to contact and compare prices manually from different suppliers

 

       2.  Save cost

  • Contractors can save their cost by having access to multiple suppliers by comparing prices of materials 
  • Contractors can purchase materials from suppliers who offer the cheapest price in the market 
  • By leveraging with multiple suppliers through iConstruct, contractors are able to receive materials on site according its requested time of arrival
  • Fast delivery = minimise construction cost

 

PRODUCT

iConstruct's B2B marketplace connects suppliers and contractors through one single online platform which provides a seamless experience for contractors to source for building materials in a cheap, fast and easy manner

Using technology, contractors can now source building materials online without the need to visit retail stores and compare prices manually from multiple suppliers. On the supply side, suppliers which ranges from manufacturers, distrbutors and hardware stores are able to sell their materials online

This allows iConstruct to shift the offline experience to a whole new online experience which allows us to digitize the supply chain of building materials.

 
TRACTION

Starting the business with a minimal capital of RM 23, 000 in July 2019, iConstruct have grown up to 35x in revenue.

July 2019 : RM 13, 724

October 2019 : RM 113, 435

January 2020 : RM 309, 534

Despite the pandemic and MCO, iConstruct have gained huge traction due to the increase demand from contractors. iConstruct is currently transacting over RM 500,000 in monthly revenue and has brought in a total revenue of RM 2.4 million within 11 months of operation

 

CUSTOMERS

iConstruct currently serves and focuses on a niche target market of contractors which are graded from G1 - G3. Contractors G1 - G3 takes up a project value of up to RM 1,000,000. This group of contractors normally serves projects as below:

  • House renovation & extension
  • Construction of houses, workshops, multipurpose hall etc
  • Replacement of roof
  • Drainage and road works

Based on statistics by CIDB in 2017, there are more than 70, 000 registered contractors of G1 - G3 which all of them are still sourcing their materials offline and manually conducting their daily operations which sums up to be a very tedious process.

 

Below are pictures of projects which iConstruct have supplied materials:

 

Construction of one-storey bungalow house (3420 sqft)

 

Construction of workshop @ UITM Puncak Alam

 

Development of 33 acres of cemetery lot @ Putra Heights

 

Roof replacement for quarters @ National Defence University

Construction of double storey bungalow @ Bangi

BUSINESS MODEL

iConstruct takes a cut from every materials sold through the platform where the profit margin ranges from 3% - 15% depending on items and quantity sold

Example:

Cement – 3%

Roofing – 12%

Pipe – 15%

Bricks – 7%

Steel bar – 8%

Drain - 8%

Wood – 13%

 

MARKET SIZE

Building materials being purchased a year in Malaysia is summed at a total value of RM 46 billion. Out of the RM 46 billion market size , all of this operations and transactions are still being done manually and traditionally.

 

Construction is the second least industry that is being digitised and have yet to embrace technology as it still remains the same as how it is 10 years ago. It is an overlooked industry that is far away behind digitisation and needs to be digitised in order to bring the industry forward. Therefore, iConstruct wants to disrupt this traditional industry to ensure construction works can be done efficiently to reduce cost and save time.

 

 

FINANCIAL PROJECTIONS

Despite the global pandemic , iConstruct sees this as a huge potential to become the market leader in digitising this brick and mortar industry. By investing in technology, this is the perfect time for iConstruct to position itself as a supply chain enabler and disrupt the building materials industry.

With the increase demand of contractors for online solutions, iConstruct aims to serve over 2,000 contractors as it targets over RM 100 million revenue over the next 3 years

COMPETITORS

iConstruct currently do not have direct competitors in the market. We do not compete with traditional retail stores or distributors , in fact we are collaborating with them and having them on board as our supplier. However, there are a few traiditional hardware stores and traders that have built their online store such as:

  • JWH online store ( hardware shop with website )
  • ATKC warehouse ( hardware store with website )
  • Lau Tat ( distributor/trader with website )

Our competitive advantages are:

  • Platform business model , easy to scale
  • Comprehensive product & one stop solution provider
  • Supported by wide coverage of suppliers 
  • Easy, cheap and fast for contractors to use
FUNDING

iConstruct is aiming to raise RM 500,000 with a pre-money valuation of RM 6,700,000

Product development (30%)

  • Website development
  • Mobile application development
  • Inventory management system & material tracking delivery system
  • Building materials calculation system

 

Operation expenditure (40 %)

  • Expansion of team to strengthen supply chain across the region
  • To increase customer base of contractors

 

Marketing (30 %)

  • Digital marketing through Facebook Ads & Google Ads
  • Video content marketing
  • Road show and exhibition

 

VISION

To bring building materials everywhere in a cheap, fast and easy manner using technology

To become Southeast Asia's leading building materials supply chain enabler

 

INVESTORS

The company was accepted into Watch Tower & Friends Accelerator, a tech accelerator program and have received pre-seed funding of RM 50,000.

TEAM

 

iConstruct currently comprises of only four members in the team

FOUNDERS

Taquiddin Tamunif

  • Site supervisor at PA Builders (Construction of 74 units of double story house at Serene Heights @ UEM Sunrise)
  • Site engineer at Dynamic Ascension Management (Development of 111 double story house at Idaman Putra, Sungai Buloh)

 

Hasif Ramli

  • Founder & Director of Pengkalan Hardware Building Materials
  • Two years experience as a contractor serving projects such as construction of houses, maintainence and road construction

 

PRESS

https://marketinginasia.com/2020/10/06/how-iconstruct-disrupts-the-construction-industry-by-growing-3500-in-over-a-year/

https://www.digitalnewsasia.com/startups/iconstruct-aims-disrupt-stuck-rut-construction-industry

http://www.maxit.my/2020/10/how-iconstruct-disrupts-the-construction-industry-by-growing-3500-in-over-a-year/

https://dagangnews.com/iconstruct-buka-peluang-pelaburan-digital-industri-pembinaan#vuukle-emote

 

 


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