ProcurePro Uses AI to Transform Construction Procurement

ProcurePro, a construction procurement platform, has raised US$11m in funding to expand its AI product suite and enter new markets.

The funding round was led by QIC Ventures, one of Australia's largest sovereign wealth funds, and included existing investors Airtree, Glitch Capital and Bouygues.

The company's valuation now exceeds US$80m.

Construction industry profitability challenges

The construction industry operates on margins between 1% and 4%, making it one of the least profitable sectors despite being valued at US$13tn globally. In Australia, where ProcurePro is headquartered, construction accounts for approximately 7% of GDP.

According to the Australian Bureau of Statistics, the sector contributed more than AU$175bn (S$126.5bn) in gross value added annually and employed approximately 1.3 million people in 2023-24, making it one of the nation's largest industries by output.

Cost overruns, schedule delays and contractor insolvencies remain common across the industry. At the procurement stage, 80% of project costs are already committed and supply chain risk is locked in. Commercial outcomes are often determined before a project begins construction.

The procurement function has received limited investment. Many firms manage procurement through fragmented spreadsheets, email chains and disconnected documents, with no single source of truth.

"Procurement sits upstream of construction spend yet remains highly manual and weakly governed. It is a globally relevant problem that remains unsolved. With Queensland delivering a once-in-a-generation infrastructure programme ahead of the 2032 Olympics, innovations that improve construction productivity are critical," says Nick Capell, Investment Director at QIC Ventures.

Platform consolidates procurement lifecycle

ProcurePro brings the full procurement lifecycle into one system, from scheduling and tendering through to bid analysis and subcontracting. Alastair Blenkin, Founder and CEO of ProcurePro, says the platform addresses a gap in the industry.

"Construction firms are still managing their most critical commercial decisions and millions in spend via out-of-date and untrustworthy spreadsheets. The lack of true oversight delays risk identification which ultimately erodes margins. We built ProcurePro to bring structure, control and certainty to the commercial cockpit of construction firms," explains Alastair.

In the last six years, ProcurePro has been deployed across 6,000 construction projects globally, worth more than US$90bn in construction value. Marie-Luce Godinot, Senior Vice-President, Innovation, Sustainability and IT at Bouygues Group, says the technology has been adopted across multiple business units.

"ProcurePro is one of the first technologies we have seen that brings greater control to the full procurement journey for contractors. It has been deployed successfully on some Bouygues projects, with usage progressively developing across several business units," adds Marie-Luce.

AI tools built on procurement data

ProcurePro has processed more than 200,000 trade packages, creating a dataset of procurement activity, pricing and supply chain behaviour. This dataset underpins the company's AI product roadmap, including BidLevel AI, a tool for comparing subcontractor quotes.

Tasks that traditionally took days or weeks for commercial teams can now be completed in minutes.

"What makes this even more powerful is the data. After years of supporting procurement across thousands of projects, we now have a rich foundation of real-world procurement data. This funding allows us to invest further in AI, where we will enable construction firms to estimate new project costs backed by their historical purchasing data, rather than someone's estimate, memory, or a finger in the wind," says Alastair.

The funding will be used to develop additional AI products and expand ProcurePro's presence in international markets.