Global venture capital firms Accel and Celesta Capital have led a $10 million round in Sequoia-backed Brick& Bolt to fund growth plans for the custom home platform.

The two global venture capital firms invested in the company as part of the Series A2 funding round, Brick & Bolt said in a January 10 statement.

Co-Founder Jayesh Rajpurohit said, “With over 85% of construction in India still unorganized, Brick&Bolt is leveraging our technology and processes to capture a huge and highly fragmented market.”

The company plans to use the funding to enhance its technology stack and strengthen its leadership team. Brick&Bolt plans to expand to more than 12 cities in the next 15 months.

Indian real estate is expected to be a $650 billion market by 2025 and a $1 trillion industry by 2030, Rajpurohit said.

“Our technology features workflow automation, BIM (Building Information Modelling) modelling and a suite of over 16 technical applications, which allow us to scale rapidly with predictable delivery rates,” he added.

The company can also supply construction materials for exclusive projects and contracts.

Founded in 2018 by Rajpurohit and Arpit Rajpurohit, Brick&Bolt operates like an e-commerce platform, offering end-to-end services, including residential construction and building materials.

The company provides consumers with technological methods and processes that simplify home and commercial construction.

This vast, distributed market currently caters to small and mid-sized real estate developers that are loosely organized, often small and operate with inefficiencies. This leads to poor customer experience, cost overruns, rework and extended timelines Sudhir Rao, Managing Partner, Celesta Capital India.

“The Brick&Bolt platform simplifies the entire process by bringing it together on one platform,” he added.

Before this round, Brick & Bolt had raised $6 million from Sequoia Capital’s Surge, Fundamental GmBH, HDFC Capital Advisors and Stride Ventures.

According to Tracxn’s cap table, the company owns about 9% of its employee stock option plans (ESOPs).

Angel investors, including Ramakant Sharma, also back the company. In FY22, the company reported a 60% year-on-year increase in operating revenue to Rs 13.8 crore. However, its net loss tripled to Rs 11.6 crore from Rs 5.8 crore in FY21.

Brick & Bolt’s fundraising comes amid a worsening funding winter, with investors looking beyond the typical industry.