Commercial services tech hasn’t historically been considered “sexy,” but the need for innovation in the space is enormous.
That need has translated into a large fundraise for a company focused on streamlining commercial contracting processes. On Friday, BuildOps, which develops software for commercial services contractors, announced that it has raised $127 million in a Series C round led by Meritech Capital that values the company at $1 billion post-money.
That valuation is “more than double” the valuation BuildOps reached in its last financing – a $50 million Series B round announced in May of 2023 and a follow-on “top up” $36 million raise for existing investors only, according to Alok Chanani, co-founder and CEO. The latest capital infusion brings the company’s total raised to over $250 million.
Founded in 2018, Los Angeles-based BuildOps has built field service management software that helps commercial contractors in the U.S. and Canada with project management, service, dispatching, and invoicing via what it describes as “AI-powered automation.” The company claims that its software helps contractors including HVAC, plumbing, mechanical and electrical, and fire and life safety increase efficiency, make fewer costly mistakes, reduce downtime, and achieve higher profitability.
“I talk to contractors every day […] and they’re busting their backs keeping our world running, but the deck’s stacked against them with short staffs, skyrocketing costs, and tech that’s stuck in the Stone Age,” 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 was director of engineering at ServiceTitan. As for BuildOps’ third co-founder, Steve Chew, he did stints at Microsoft, Nextag, and Fundly.
Mittal is no longer with the company, according to his LinkedIn.
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.
Chanini declined to reveal hard revenue figures, but noted that since the company launched its platform in 2020, BuildOps has “grown exponentially,” 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 Chanini.
Looking ahead, BuildOps plans to use the new capital to expand its headcount and invest in products and technology development, particularly its API architecture. It’s also eyeing what Chanani described as “strategic acquisitions.”
Currently, BuildOps has about 375 employees, up 50% compared to a year ago.
For Meritech Capital general partner and co-founder Paul Madera, commercial services is a “massive and critical segment of our economy that has been woefully underserved by modern software.”
“Alok and the BuildOps team saw 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 done nothing short of transforming their business operationally and financially. Most importantly, it allows them to better serve their customers.”
He told TechCrunch that his firm was also drawn to the fact that BuildOps is exclusively focused on the commercial sector.
“Every customer […] does things a little differently, meaning the software needs to be highly configurable, like any other core system of record,” he said. “BuildOps has nailed this balance of product depth, flexibility, and usability in a really unique way.”
Interestingly, TechCrunch Editor-in-Chief Connie Loizos pegged BuildOps to be one of 2019’s most “notable young startups” in this piece.
New backers Bond Capital and Schneider Electric’s SE Ventures also participated in BuildOps’ Series C round, as well as 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 execs Dick Costolo and Adam Bain), Founders Fund, MetaPrio B Capital, 137 Ventures, and Liquid2.
