(Bloomberg) -- An arm of Brookfield Asset Management Inc. led a $175 million equity funding round for Material Bank, Chief Executive Officer Adam Sandow said in an interview.
New and existing investors including Fifth Wall also participated, he said. The round s the design materials marketplace at almost $1.9 billion, according to people with knowledge of the matter.
The transaction, by Brookfield Growth, marks an almost doubling of the $975 million valuation that the Boca Raton, Florida-based startup reached last April, according to data compiled by PitchBook. At the time, the company said it raised $100 million from investors led by General Catalyst and Henry Ellenbogen’s Durable Capital Partners, with participation from Bond, Lead Edge Capital, Bain Capital Ventures and Raine Ventures.
Material Bank operates a marketplace for sampling of architectural, design and construction materials, such as paints and wood panelings, with next-day delivery. While the platform is free to use for design professionals, Material Bank earns revenue by charging its brand partners, and expects to eclipse $100 million in revenue by the end of 2022.
“Material Bank is reinventing the way in which architects, designers and corporate users search and sample,” said Josh Raffaelli, a managing partner at Brookfield. “This instantly connects hundreds of suppliers with target customers and streamlines a historically lengthy selection process. As one of the largest developers in the world, Brookfield is a proponent for standardizing the sampling and specification process to build beautiful spaces in a sustainable and efficient manner.”
The funding will be spent in part on developing new tools, fueling international expansion -- initially in Europe -- and for strategic acquisitions, Sandow said. Already, it has snapped up U.K. procurement platform Clippings and software-development company Amber Engine.
“As we enter an uncertain economy, it’s important to have a fortress balance sheet,” said Sandow, adding that the fresh funding will also be used to further automate Material Bank’s logistics center in Memphis, Tennessee. The center provides next-day delivery of material samples in a single box, an effort that the startup says promotes sustainability and decreases packaging waste.
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