Colombian startup Hippo.Build has announced its admission to the renowned accelerator Y Combinator (YC) in the select group for winter 2022.
The Bogotá-based company offers back office software and automation solutions for the construction sector. It will use the US$500,000 investment from YC to further develop its software solution.
Hippo.Build connects with financial institutions, material service providers and other marketplaces. Through these third parties, it distributes its products to the small and medium-sized business (SMB) construction market.
These types of companies constitute the backbone of the construction sector worldwide. However, they often do not have the financial means or access to robust computer systems to be able to optimize their operations.
It is estimated, for example, that about 98% of construction companies in Latin America cannot afford high-quality ERP solutions. This can obstruct collaboration and affect projected margins by up to 60%.
In Colombia, average construction companies have revenues of US$2 million a year and average profit margins of US$60,000. Two of the specific objectives of Hippo.Build is to help them reduce all their construction costs by 5% and increase their profits by up to 250%.
To do so, it implements solutions without the need for drastic internal changes. For example, eliminating its existing technology or staff, purchasing new software or retraining team members.
After entering Y Combinator, where only 2% of applicants are accepted, Hippo.Build’s biggest challenge will be to provide its technology to more than one million construction companies around the world over the next decade.
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