Payments and financing startup BlueTape has raised $55m investment to help small and midsize business (SMBs) engaged in the construction sector to improve their payments infrastructure.
The investment comprises a $50m debt funding round led by Arcadia Funds and a $5m seed round, which was led by Chicago Ventures.
A number of construction industry professionals, real estate developers, and Plug and Play Ventures also participated in the fundraising.
BlueTape aims to use the fresh infusion to increase lending, add new employees as well as build new solutions to enable stakeholders in construction industry to resolve the housing and infrastructure emergency in the US.
The company noted that the market size of the US construction sector is more than $1.3 trillion, which includes more than three million SMBs.
BlueTape has developed solutions that combine financing options with accounts receivable and invoice management tools.
BlueTape credit can be used by industry players to purchase building materials from various suppliers and pay them back later.
The company has also developed a network of construction industry dealers and suppliers who provide BlueTape credit immediately to their traders. This is designed to help construction suppliers to reduce their risk as well as augment their cash flow and user experience.
BlueTape CEO and co-founder Yaser Masoudnia said: “We have had enormous demand from construction businesses for our services since we launched.
“Inflation and supply chain interruptions mean builders and contractors need more working capital.
“With the funding from Arcadia and Chicago Ventures, we will be able to help more construction companies get the financing and payments services they need to navigate economic uncertainty and supply chain issues.”
In May this year, BlueTape rolled out a virtual card for allowing experienced construction players to use a buy-now-pay-later option while dealing with building supplier.