Materials Market, the innovative online marketplace for heavy side building materials, has raised £2 million in a funding round led by its existing backers Fuel Ventures, with participation from new investors Active Partners (whose investments include household names like Soho House and Honest Burgers) and an assortment of experienced angel investors. In addition to the new funding, Materials Market also welcomed two new directors to the board: James Mackenzie (ex MD of Travis Perkins & Toolstation with extensive experience in the digital building materials space) and Thomas Studd (former partner at Vitruvian whose portfolio experience includes two-sided marketplaces such as AnyVan, Carwow and Lalamove).
The UK’s £40bn building materials market is hugely fragmented, comprising thousands of suppliers servicing localised areas with constantly fluctuating stock and delivery capabilities. For buyers of building materials, the purchase process involves contacting numerous suppliers to negotiate prices and discuss stock availability and delivery options. With limited digital adoption amongst suppliers, the process remains highly analogue, creating significant friction and frustration, as well as fostering an opaque pricing environment. Against the current macroeconomic backdrop of price inflation and the government’s push to build 1.5 million homes before the end of this term, the opportunity to disrupt the market with a digital-first offering is vast.
Founded by professional construction buyers Samuel Hunt and Andrew Haehn, who experienced these problems first-hand, Materials Market is on a mission to create a perfect online market for the buying and selling of building materials. Leveraging its proprietary marketplace technology and working with a huge network of supplier partners across the country, Materials Market offers low prices, speedy delivery and great service levels to DIY and trade customers. As well as providing customers with fairer pricing than they would get from well-known retailers, Materials Market gives its suppliers access to an online market without the need to invest in expensive digital infrastructure.
Since 2020, Materials Market has grown from a spare bedroom startup to the leading marketplace of its kind in the UK. The number of suppliers actively engaged on the platform has reached over 750 branches, more than any other UK building materials supplier (online or offline). This supply chain is now supporting an ecosystem of over 2,000 monthly customers, ranging from DIY enthusiasts looking for a better deal than those offered by general retailers, to construction contractors working on large commercial projects. The latest investment will be used primarily to recruit best-in-class talent, including across its supplier and sales teams, marketing, product and operations, helping Materials Market to further push the boundaries of its marketplace model and unlock new and innovative ways to connect customers and suppliers.
