UK: Construction technology firm Modulous has raised £10 million in a funding round from investors including PATRIZIA and Regal London.
Modulous is aiming to help developers and construction firms build modular housing without capital-intensive factories. Investors in the round include PATRIZIA-backed Sustainable Future Ventures (SFV) (Germany), Regal London (UK), CEMEX Ventures (Mexico), Blackhorn Ventures (US), GroundBreak Ventures (Canada), Goldacre (UK), and Leela Capital (UK).
Its team has previous experience from roles at companies including Microsoft, Google, Katerra, Ramboll, 3i, WeWork, Rolls Royce and Netflix.
Modulous has developed a software platform that aims to solve major pain points across the three core areas of the home building process – architecture and design; construction; and development.
Modulous’s software generates optimised designs and massing for a site and bases these on its physical Kit of Parts. “This not only guarantees the technical feasibility of the design, but also provides accurate costs and programme, all completed in hours. Architects can avoid spending weeks on speculative work, designing schemes that may turn out to not be economically viable, and instead present clients with a variety of options inside a day, upping their chances of winning work while letting them focus on more productive tasks,” the company says.
The Kit of Parts also enables contractors to deliver multi-storey apartment blocks with no upfront investment. Instead of requiring factories, Modulous’s established supply chain partners deliver sub-assemblies to assembly facilities near site, “increasing margin, employing local labour, and improving working capital efficiency”.
The Modulous platform also produces 3D visualisations, detailed cost plans and will provide developers a real time analysis of return-on-investment calculations, “enabling them to quickly option sites and establish land values driven by accurate data”.
Modulous’s supply chain partners, including the likes of Knauf and CEMEX, have “focused their collaboration on continuously reducing the number of components required, similarly to the approach previously taken by the automotive and aviation industries”. By tracking each of these components, it will be possible to measure and calculate the accurate carbon content of a scheme, and to ensure the use of healthy, non-toxic materials.
Chris Bone, CEO at Modulous, said: “Building energy efficient, affordable housing without the waste and carbon footprint that accompanies traditional construction has never been more critical. Modular delivery is really the only way the housing crisis can be resolved, but, for many, the upfront capital investment has held back the industry’s ability to scale. We are keen to prove that by collaborating with each other, the industry can move forward with transparency and cost certainty front and centre. That’s why we are delighted to have completed this Series A round in the most testing funding environment for decades. It’s a testament to the potential we have to solve the housing crisis and, to the amazing team we have built.”
Conan Lauterpacht, partner at Sustainable Future Ventures, said: “We are very pleased to back the outstanding Modulous team, which brings together experts across design, construction, and technology. Modulous stands out for us in the way it has brought together the physical and the digital in the built environment by combining its ground-breaking ‘Kit of Parts’ modular solution with a digital design platform. We are excited to support the company’s mission to reinvent the way homes are delivered while prioritising better outcomes for people and planet.”
Jonathan Seal, CEO at Regal London, added: “We are delighted to be participating in this funding round and entering into a strategic relationship with Modulous. We believe that Modulous is making great strides to truly disrupt the real estate industry as the sector moves towards delivering net zero developments. We are thrilled to be partnering with Modulous, bringing together Regal London’s fully integrated delivery model and Modulous’ technological innovation – we are excited to be part of this journey.”
