YAKUB ABDULRASHEED – Saudi Arabia-based construction and procurement technology startup Project Suppliers has raised $1 million dollars in its first pre-Seed funding round as it moves to expand beyond connecting construction businesses with suppliers and develop artificial intelligence-powered financial solutions for the sector.
The funding came from a group of angel investors whose identities were not disclosed.
Founded in 2020 by Hossam Gaber, Project Suppliers operates a digital platform that connects suppliers and buyers across the construction and procurement industries, providing tools for sourcing, quotation requests, transaction tracking and reporting.
The company plans to use the new capital and data generated through its platform to develop predictive and financing solutions aimed at helping construction and MEP businesses manage cash flow, cope with delayed payments and improve supply-chain efficiency.
A digital marketplace for construction businesses
Project Suppliers has built its platform around one of the everyday challenges faced by contractors and suppliers, which is finding the right business partner and managing procurement efficiently.
Instead of relying entirely on traditional methods of contacting multiple suppliers to request prices and compare offers, contractors can use the platform to search for suppliers, submit requests for quotations and track procurement activities digitally.
The platform also serves suppliers by giving them access to potential customers looking for construction and MEP products and services.
According to the company, its database now contains more than 12,000 suppliers and contractors, while nearly 600,000 requests for quotations have been submitted through the platform.
Its tools are designed to make procurement activities easier to organise by allowing businesses to manage quotation requests and generate reports from their transactions.
The scale of activity on the platform is also significant because it gives Project Suppliers access to operational data generated from real construction and procurement activities.
The company intends to use this data as the foundation for its next phase of growth, moving from a procurement-focused digital platform towards a broader technology and financial-services offering for businesses operating within the construction ecosystem.
Why is cash-flow management a major construction challenge
For many construction and MEP businesses, securing contracts and making sales does not necessarily mean having immediate access to cash.
Contractors and suppliers can complete work or deliver materials but wait weeks or months before receiving payment, creating pressure on their ability to pay employees, purchase new materials, settle bills and continue operating.
Project Suppliers says this problem remains particularly significant across the MEP supply and construction sectors, which are playing an important role in Saudi Arabia’s large-scale development projects under Vision 2030.
Gaber described the investment as arriving at an important stage in the company’s development, saying:
“This investment round comes at a pivotal time, reinforcing the importance of the platform as an innovative tool that combines operational connectivity with smart financial solutions.”
He also highlighted the structural financial difficulties affecting businesses in the sector, noting that “the MEP supply and construction sector is a key backbone of major projects in Saudi Arabia under Vision 2030.”
However, he added that the industry “continues to face structural challenges related to cash flow management and delayed financial settlement cycles between contractors and suppliers.”
How AI could help suppliers predict financial problems
Project Suppliers plans to use artificial intelligence to analyse the operational information generated through its platform and develop predictive tools capable of helping businesses understand and manage their future financial positions.
Rather than simply recording transactions after they occur, the proposed technology is intended to identify patterns that could help companies anticipate cash-flow difficulties before they become serious.
For instance, a supplier that regularly waits several months for payment from contractors could potentially use such technology to anticipate when its available cash may become insufficient to cover upcoming expenses.
The system could analyse transaction histories, payment patterns and other relevant business information to provide insights that help companies make better financial decisions.
The company also plans to develop financing tools designed to address situations where businesses have money tied up in delayed payments. These solutions are expected to focus particularly on suppliers and companies operating within the construction and MEP sectors, where lengthy settlement cycles can affect day-to-day operations.
The planned approach therefore represents a shift from simply helping companies find business opportunities to helping them manage the financial consequences of those opportunities.
By combining procurement data, artificial intelligence and financial technology, Project Suppliers aims to create tools that could improve liquidity and make supply chains more resilient.
Project Suppliers targets Saudi Arabia and the wider GCC
Following the funding round, Project Suppliers is preparing to launch its new financial and technology solutions for contractors and suppliers across Saudi Arabia’s construction and MEP sectors.
The company also plans to eventually expand the offering into the wider Gulf Cooperation Council market, potentially taking its technology beyond its current Saudi Arabian base.
The expansion comes as Saudi Arabia continues to pursue major infrastructure and economic-development projects under Vision 2030, creating demand for construction companies, suppliers and specialised service providers.
For businesses participating in such projects, the ability to manage procurement efficiently while maintaining sufficient working capital can be as important as winning contracts.
Project Suppliers’ strategy is therefore centred on becoming more than a digital marketplace. Its existing network of suppliers and contractors and the large volume of quotation activity on its platform could provide a foundation for developing additional technology and financial products.
The newly raised $1 million is expected to support that transition, as the company works to introduce AI-powered predictive and financing tools and position itself for expansion across the GCC.
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