News Update

Brick&Bolt sees 60% increase in topline, but experiences 2X rise in losses, backed by Accel

• ByStartupStory     |    March 25, 2023

In January this year, Brick&Bolt, an online construction marketplace, secured $10 million (Rs 80 crore) in funding from Accel and Celesta Capital following a 60% surge in the company’s topline. However, the Bengaluru-based startup’s bottomline took a hit, sinking by around 2X during the fiscal year that ended in March 2022. According to the financial statement filed with the Registrar of Companies (RoC), Brick&Bolt’s gross revenue from operations increased by 60.5% to Rs 13.8 crore in FY22 compared to Rs 8.6 crore in FY21.

During the last fiscal year, Brick&Bolt generated approximately 52% of its operating income from commissions charged as project management fees, while the remaining 48% came from material supplies. The company also earned Rs 45 lakh in interest and gains on financial assets. Founded in 2018 by Jayesh Rajpurohit and Arpit Rajpurohit, Brick&Bolt provides a range of services, including home construction, construction for businesses, and building materials. 

The platform also connects contractors and architects with customers. Brick&Bolt currently operates in Bengaluru, Mysuru, Hyderabad, Chennai, Jaipur, Pune, and Delhi-NCR, and has plans to expand to 12 cities in the near future. In the last financial year, employee benefits were the largest cost center for the company, accounting for 55% of total expenses. 

The cost of employee benefits increased more than two-fold to Rs 16.35 crore. Cost of materials was another significant expense, rising 29% to Rs 6.64 crore from Rs 5.14 crore in FY21. Marketing and branding expenses amounted to Rs 3.38 crore, while project-related payments to vendors were Rs 62 lakh in FY22. Additionally, IT costs, including software, subscriptions, and cloud services, totaled Rs 32 lakh during the fiscal year.

Brick&Bolt experienced a significant rise in total expenditure during the last fiscal year, resulting in a 2X increase in losses, which reached Rs 11.64 crore. The Bengaluru-based startup’s cost center was employee benefits, accounting for 55% of total expenses, followed by material costs, marketing & branding expenses, IT costs, and project-related payments to vendors. 

Despite the company’s losses, it raised $16 million from investors, including Accel, Celesta Capital, Surge, and Foundamental, among others, bringing its valuation to around $45-50 million. Infra.Market, backed by Tiger Global, is the largest player in the construction marketplace, serving only builders and construction firms. 

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