iConstruct was started with a mission to revolutionize the trade of building materials particularly in the construction industry. We noticed that construction is an overlooked industry that has yet to embrace any sort of digitalisation and we felt that something needs to be done.
Prior to starting iConstruct, we have had experience working as a contractor at a construction site and realised that there were many pain points that have not been addressed.
We saw a huge problem when it comes to sourcing of building materials from suppliers and an inefficiency of material delivery to the construction site. These problems are causing contractors additonal costs and has yet to be solved.
We started iConstruct in July 2019 to provide contractors a "Lazada like" experience in an efficient and transparent manner to purchase building materials in a cheap, fast & easy manner. Our aim is to digitize the supply chain and disrupt the conventional way of buying and selling building materials.
- 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 2.5 million in revenue within 11 months of operation
- iConstruct's current monthly revenue had surpassed over RM 600,000 having over 70 contractors transacting through its platform
- Contractors face a hassle to source for cheap building materials from multiple suppliers
- Contractors will need to make countless trips to retail hardware stores to source for building materials
- Slow and tedious ordering process with no transparent pricing and stock availability
- Contractors will have to compare prices manually from multiple suppliers before purchasing a material
2. Materials arriving late increases construction cost and causes project delay
- Time is money in construction because it includes cost of workers per day + equipment rental
- Contractors do not have real time data information on their material delivery
- Contractors will have to deal with late deliveries needing to wait hours & days for the materials to arrive. This increases the cost of construction
- Slow progress and project delay = increase in construction cost
- Easy source
- Contractors can now source for building materials and compare prices from multiple suppliers via online
- Smooth ordering process with transparent pricing and access to stock availability
2. Save cost
- Contractors can save their cost by purchasing materials from suppliers who offers the cheapest price in the market
- By leveraging with multiple suppliers and logistics support through iConstruct, contractors are able to receive materials on site according its requested time of arrival. This is to ensure a fast work progress and avoid from project delay
- Fast delivery = minimise construction cost
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.
Using technology, contractors can now source building materials online without the need to visit retail stores and compare prices manually from multiple suppliers with clear transparency. On the supply side, suppliers which ranges from manufacturers, distrbutors and hardware stores who have been operating traditionally, are now 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.
( The total revenue generated have come from two entities which are TH Construction Technology & Stream Shop Sdn Bhd where the directors & founders are the same for both companies. Details can be referred in the two management accounts attached )
TH Construction Technology : 1 July 2019 - 30 April 2020
Stream Shop Sdn Bhd : 1 May 2020 - 31 August 2020
Beginning from the 1st of May 2020, all business activities and income have purely been transacted through Stream Shop Sdn Bhd.
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
August 2020 : RM 504, 200
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 2.5 million within 11 months of operation
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
- Interrior design works
Based on statistics by CIDB in 2017, there are more than 70, 000 registered contractors of G1 - G3 where all of them are still sourcing their materials offline and manually conducting their daily operations which sums up to be a very tedious process.
Currently, generating over RM 500,000 in monthly revenue, we are only serving 70 contractors where we are only at 0.1% of our target market. The remaining contractors are still conducting their daily materials sourcing offline and we view this as a huge potential for iConstruct to digitise this industry.
Below are visuals 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
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
Below are the margin levels by material type:
Cement – 3%
Roofing – 12%
Pipe – 15%
Bricks – 7%
Steel bar – 8%
Drain - 8%
Wood – 13%
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 operated.
Clearly, there is no tech player in this industry and it is currently very traditionally done. This is a very huge market size with lots of opportunities and problems that have yet to be solved. This puts iConstruct at a very strong position to be a clear market leader in digitising this brick & mortar industry over the next few years.
Over the years, we have seen a lot of industries implementing technology and digitisation in its businessses. However, we have yet to hear any in the construction sector. Construction is considered as one of the major sources of economic growth of the country but sadly, very less technology driven
Construction is left behind !
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.
iConstruct currently does 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
iConstruct is aiming to raise RM 500,000 with a pre-money valuation of RM 6,700,000
Utilising the fund of RM 500,000 , we want to aggressively onboard 1,000 contractors in the next 18 months to achieve RM 7 million in monthly revenue. This will also put iConstruct in a position to generate over RM 100 million in revenue in the next 3 years by strengthening our supply chain and expanding our customer base of contractors.
Despite the global pandemic , we see 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 which solves pain problems for contractors in the industry. This is the right time as contractors and suppliers are now forced to move from an offline experience to a whole new online experience to conduct their daily operations.
Our vision is clear, we want to be No. 1 in the building materials space in Malaysia and capture a substantial market share in this industry. We are super motivated and confident to make this happen as we believe iConstruct will be a must-have solution for all contractors and suppliers in this trade of building materials.
The company was accepted into Watch Tower & Friends Accelerator, a tech accelerator program and have received pre-seed funding of RM 50,000.
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)
Founder & Director of Pengkalan Hardware Building Materials
Two years experience as a contractor serving projects such as construction of houses, maintainence and road construction
iConstruct currently comprises of only four members in the team
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