CutStruct Technology led by two second-time founders – John Oamen and Tayo Odunsi have just concluded a pre-seed round fundraise of about $600,000 led by Zedcrest Capital, DFS Lab and Lofty Inc, with the participation of angel investors including Kola Aina to build its premier product – LiveVend.
LiveVend is a construction procurement platform that allows buyers (real estate developers, contractors etc.) to engage vetted vendors on a simple and transparent platform while enjoying other services such a transportation, goods-in-transit insurance and trade credit which is offered by Sterling Banks’ buy-now, pay-later product – Specta for Business.
John Oamen – CEO of CutStruct described the platform as very simple – “We connect construction vendors to buyers. All the complex work takes place in the background. The vendor vetting, sorting out the appropriate logistics, ensuring the goods are insured, guaranteeing fulfilment and securing financing – these are the complex things we do in the background, while our users engage with a simple platform”.
The Chief Strategy Officer – Tayo Odunsi also highlighted that the platform is free to use for buyers and they can also access weekly pricing data of major building materials across major locations in the company’s beachhead market, Nigeria.
To create the LiveVend solution, CutStruct partnered with best-in-class solution providers which includes Axa Mansard for insurance, Sterling Bank for construction materials financing, Apel Trustees for escrow service, VerifyMe for vendor verification and Greychapel Legal for all legal and deal structuring.
“We invested in John, Tayo and the Cutstruct team because we also believe in the untapped potential within the construction vertical in Nigeria and across Africa” said Stephen Deng – Partner at DFS Lab. He continued – “We believe tech-enhanced, specialized B2B platforms like LiveVend have a chance to vastly improve buyer and seller experiences in otherwise traditional industries and unlock massive opportunity to digitize large value streams in the process. The team’s expertise within industry and their vision to offer highly relevant services backed by their own on-the-ground experiences have been deeply impressive.”
Dayo Amzat – CEO Zedcrest Capital also clarified why his company backed CutStruct; “Over the last decade, Africa in general, has seen tremendous improvement in many sectors of the economy ranging from payments, e-Commerce, banking, telecomms etc. However, despite the biggest capital asset on the continent being real estate, every aspect of the real estate value chain from construction management to mortgages remain grossly underdeveloped, with very low net promoter scores. We therefore welcome the efforts of John and Tayo in helping organise the construction marketplace, bringing much needed transparency and improvements to construction processes. This fits into our interest at Zedcrest, and is in line with a major market development initiative we are currently pursuing with an African-focused housing-DFI”
CutStruct Technology coined from “Cutting cost in construction using Technology” sums up the mission of the company with a focus on Africa and other emerging markets. LiveVend is the company’s flagship product and has onboarded well over a hundred vendors and major construction materials manufacturers.