Scalera: Revolutionizing Construction Procurement with AI

May 10, 2025, 5:09 am
Firstminute Capital
Firstminute Capital
ToolsPlatformITFinTechBuildingDataHealthTechManagementSoftwareLearn
Location: United Kingdom, England, London
Employees: 11-50
Founded date: 2017
In the heart of Switzerland, a startup is poised to transform the construction industry. Scalera, an ETH Zürich spin-off, has raised €5.7 million in seed funding to tackle the inefficiencies plaguing construction procurement. The construction sector is a giant, lumbering beast, often slow to adapt to modern technology. Scalera aims to inject it with a dose of agility and efficiency.

The funding round was led by firstminute capital and Speedinvest, with support from a cadre of angel investors, including seasoned veterans from Google and successful unicorn founders. This diverse backing signals confidence in Scalera’s vision. The startup's mission is clear: simplify the procurement process in construction, a field notorious for its outdated practices.

Construction procurement is a labyrinth. Companies often wade through mountains of paperwork, sifting through thousand-page PDFs, copying line items into spreadsheets, and sending emails to suppliers one by one. It’s a tedious, time-consuming process that can stifle progress. Scalera’s co-founder and CEO, Leonardo Reinhard, describes the current system as broken. His solution? A platform that harnesses artificial intelligence to automate these cumbersome tasks.

Scalera’s core product is a game-changer. It uses AI to parse complex tender documents, match supplier catalogs to line items, and streamline the bidding process. This innovation could reduce bid preparation time from days to mere hours. In a sector where every minute counts, this is a significant leap forward.

The construction industry is ripe for disruption. With a staggering €11.5 trillion spent on procurement globally each year, the potential for Scalera is enormous. In the European Union alone, over 250,000 public bodies allocate approximately €1.7 trillion annually for contracts related to infrastructure, housing, and energy. Yet, much of this spending is hindered by outdated procurement processes. Scalera aims to change that.

The platform automates the most painful parts of procurement. It ingests lengthy, unstructured tender documents and maps items to standard taxonomies like NPK, BKP, VOB, and ÖNorm. This not only accelerates bidding cycles but also reduces errors and fosters collaboration between buyers and suppliers. Scalera’s technology promises to turn a chaotic process into a streamlined operation.

The construction sector is the largest in Europe, yet it remains mired in inefficiency. Many companies still rely on manual processes that slow down project delivery. Scalera’s approach is to leverage AI to automate essential mid- and back-office functions. This could lead to improved efficiency and profitability for construction firms.

The startup has already made significant strides. Scalera has processed over €2.1 billion in tenders and claims to cover 65% to 75% of construction contractors in Switzerland. With 74% month-over-month growth, Scalera is not just a flash in the pan; it’s a rising star in the construction tech landscape.

The potential for Scalera extends beyond Switzerland. The company is expanding into Germany and Austria, aiming to establish itself as the preferred procurement engine in the DACH region. This expansion is fueled by the belief that AI can revolutionize how construction companies operate. The time for change is now.

Investors are taking notice. Sam Endacott from firstminute capital highlights the excitement surrounding generative AI and its potential to reshape industries that have yet to fully embrace digital transformation. The construction sector is a prime candidate for this shift. Scalera is at the forefront of this movement, ready to lead the charge.

The construction industry is often seen as a slow-moving giant, resistant to change. But with startups like Scalera emerging, the tide is turning. The combination of AI and construction procurement is a match made in heaven. Scalera’s platform promises to bring transparency, speed, and efficiency to a sector that desperately needs it.

As Scalera continues to grow, it faces the challenge of scaling its technology while maintaining the quality of service. The construction industry is complex, with varying standards and regulations across different countries. Scalera’s ability to navigate these complexities will be crucial to its success.

The startup’s founders are well aware of the hurdles ahead. They are committed to refining their platform and expanding their reach. The goal is to empower governments and builders to move faster, reduce costs, and collaborate more effectively. Scalera is not just about technology; it’s about transforming the entire construction ecosystem.

In conclusion, Scalera is more than just a startup; it’s a beacon of hope for an industry in need of modernization. With its innovative use of AI, Scalera is set to redefine construction procurement. The journey is just beginning, but the destination is clear: a more efficient, transparent, and agile construction sector. The future of construction is here, and it’s powered by Scalera.