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CAIRO: UAE-based business-to-business construction technology platform ProTenders plans to enter Saudi Arabia after witnessing a booming industry worth $1.1 trillion.
ProTenders is a B2B platform that connects the construction supply chain ecosystem, making it more transparent and streamlining the bidding process.
Karim Helal, co-founder and CEO of ProTenders, told Arab News in an interview that the company plans to expand to Saudi Arabia this quarter after seeing tremendous growth due to Vision 2030.
“Vision 2030 clearly outlines an economy-wide transformation that has sparked many major projects across the Kingdom. However, much of the construction industry follows legacy processes and we believe ProTenders will be of interest to the entire construction ecosystem or add significant value,” he said.
Helal further added that the Kingdom currently has projects worth more than $1.1 trillion, a diversification strategy in line with Vision 2030, which presents a huge opportunity for ProTenders to enter the market.
“As we prepare to officially enter Saudi Arabia, we are in talks with some of the largest family offices, construction stakeholders and ecosystem enablers in Saudi Arabia to launch ProTenders. We will be ready to announce something within the second quarter of this year, “He said.
Helal explained that the construction industry is rife with miscommunication and a lack of proper data-driven solutions, which is estimated to cost the region around $70 billion a year.
“We are focused on entering the Saudi Arabian market. We continue to work with our stakeholders to support their vision for growth in the Kingdom through our technology. ProTenders will not only drive operational enhancements in the industry, but will also create cost savings, efficiencies and transparency, “He said.
The company expects about 9,000 companies in the Kingdom alone to join its platform in the next two years, which Helal says account for 40% of construction companies operating in Saudi Arabia.
“More than just expansion, we intend to fully relocate ProTenders’ headquarters to Saudi Arabia, so hiring will take place in every function in Riyadh and every major city in the Kingdom,” Helal added.
The company also has plans to expand beyond Saudi Arabia into the Middle East, but Helal explained that these plans are in place for 2024 after the company consolidates its presence in Saudi Arabia.
“We will grow our overall team to more than 100 people over the next 24 months to support our expansion in Saudi Arabia and across the region and build out the platform,” he said.
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ProTenders is also working on its product development by building out its eTendering capabilities, creating a marketplace for suppliers, developing targeted advertising, expanding its customer relationship management capabilities, and incorporating artificial intelligence into the platform.
ProTenders is also working on its product development by building out its eTendering capabilities, creating a marketplace for suppliers, developing targeted advertising, expanding its customer relationship management capabilities, and incorporating artificial intelligence into the platform.
Helal explained that the company has managed $52 billion in bids for more than 2,500 projects on its platform and has more than 30,000 companies on 70,000 projects in the region.
He further explained that Saudi Arabia will drive the company’s growth metrics as Helal expects to double those numbers within 12 to 16 months of expanding into Saudi Arabia.
“Saudi Arabia’s economy has shown great resilience and will be one of the fastest growing countries in 2023. This stability helps finance large real estate projects and builds confidence in the sector,” he added .
“For us at ProTenders, our technology will realize leadership’s vision for the construction industry and drive greater efficiency, savings and transparency that will ultimately benefit Saudi Arabia,” he said.
ProTenders is a self-funded startup with owners and an angel investor pumping over $7 million into the business. However, the company is currently working on closing a $10 million Series A round to support the aforementioned plans.
Helal explained that the company provides developers and consultants with a platform to manage their bidding process, saving 90% of the time and money normally required.
Contractors and suppliers, on the other hand, use ProTenders to expand their coverage to 8 to 10 times normal.
ProTenders offers a subscription-based service for certain modules, and other modules are free to start.
The company is still not profitable, but Helal explained that ProTenders aims to “be profitable within the next 24 months as we expand in the Kingdom and the rest of the region.”
Helal started working in the industry in 2006, continuing his legacy by taking over his father’s construction business. He realized there was a huge gap, which he explained as “inefficient, opaque and risky”, and decided to start working on solutions to simplify the construction industry.
“ProTenders is the result of that realization and hundreds of conversations and transactions with other construction professionals,” he added.
“Real estate is the largest asset class in the world. However, it remains fragmented, with too many players, and no unified way to identify partners for projects. Technology solves these challenges, which are global in nature. We hope to Use our platform to address these issues in the region before expanding to other regions,” concludes Helal.
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