Prolo, an AI-powered procurement platform for SME construction firms, has raised £4.2 million in seed funding led by Triple Point Ventures, with participation from a16z Scout Fund, Anamcara Capital, Concrete VC, Foundation Ventures, Haatch, Koro Capital, Love Ventures and Portfolio Ventures. The funding will support go-to-market sales and marketing efforts and accelerate new product and technology rollouts.
Prolo acts as an outsourced, AI-powered procurement team for construction site managers, who can reach it via WhatsApp, email or phone. It scans a network of more than 185 suppliers to offer SME contractors trade rates on bulk materials and specialist plant hire that are typically reserved for Tier 1 giants. Prolo also offers flexible credit terms of up to 90 days, countering standard industry payment terms and allowing contractors to take on larger projects that grow their margins.
UK construction has been weathering its toughest economic run since the global financial crisis, with small contractors bearing the brunt of material price shocks and tight margins. The Chartered Institute of Building notes that supply chain disruptions and manual workflows contribute to roughly 40% of projects suffering delays averaging five months.
Morris-Manuel previously founded Virtual Walkthrough, building it into a European market leader before its acquisition by spatial data company Matterport, where he went on to serve as EMEA Managing Director, establishing London as the company's regional headquarters.
For decades, SME contractors have been penalised by a lack of price transparency and inefficient ordering, often paying a premium simply because they lack the time and purchasing power of the Tier-1 giants. Through scaling Virtual Walkthrough and my time at Matterport, we learned how to build robust tech that solves very real, very painful operational bottlenecks for the built environment. With Prolo, we are entirely shifting the dynamic of construction supply chains. The demand we are seeing right out of the gate is phenomenal.
Construction companies are vital to the UK economy, and they will play an increasingly important role as the country looks to accelerate the delivery of new housing and infrastructure. Procurement remains one of the most manual and margin-sensitive parts of running a construction business, and Prolo has a huge opportunity to change that. By using AI to help firms automate procurement, find the right products at the best prices, and improve their margins, Prolo is solving a real and urgent problem for the industry. We're excited to be backing James, a repeat founder with a strong track record, as he builds a category-defining business in construction procurement.
