SoftBank Vision Fund, the $98bn investment fund formed by telecommunications and internet group SoftBank, led an $865m series D round for US-based construction services platform Katerra yesterday.
Canada Pension Plan Investment Board, Tavistock Group, Navitas Capital, DivcoWest and an investment fund managed by Soros Fund Management also took part in the round.
Contract manufacturer Foxconn, Greenoaks Capital, DFJ Growth, Khosla Ventures and Louis M. Bacon were identified by Katerra in a statement as existing investors, but it did not confirm their involvement in the series D funding.
Katerra has created an end-to-end construction services business that includes architecture and interior design, engineering, the supply and construction of building materials and the construction itself.
The company uses building information modelling to get a clear idea of a site’s overall space, and saves money by offering a range of standardised building models that can be customised for each individual client.
The round valued Katerra at “just over” $3bn, co-founder and chairman Michael Marks told CNBC. Marks was previously CEO of Flextronics, the supply chain services firm now known as Flex.
Katerra plans to put the capital into research and development and the expansion of its manufacturing facilities as it seeks to sustain growth that has given it more than $1.3bn in booked construction projects.
Jeffrey Housenbold, managing partner at SoftBank Vision Fund, will join Katerra’s board of directors in conjunction with its investment. He said: “Katerra is leveraging the latest technologies to radically transform the way people build.
“Drawing on his experience leading Flextronics, Michael’s unique vision and talented team are taking the great lessons of electronic manufacturing and applying them to an industry that is in dire need of change. We are excited to support Katerra as they expand across markets and geographies and unleash a new wave of productivity.”
Katerra has now raised approximately $1.09bn since it was founded in 2015, including $130m in an April 2017 series C round that valued it at more than $1bn. Foxconn, Greenoaks Capital, Khosla Ventures, DFJ, Moore Capital Management and Paxion supplied the earlier funding.