Saudi construction procurement platform Project Suppliers has raised SAR 3.75 million in pre-seed funding from undisclosed angel investors to develop financial tools designed to help construction and MEP suppliers manage cash flow and delayed payments.

The company plans to use the funding to develop AI-powered forecasting and financing products, initially launching them in Saudi Arabia before expanding across the wider GCC.

From Procurement to Supplier Finance

Founded in 2020, Project Suppliers operates a B2B procurement platform connecting contractors with suppliers of construction materials.

Contractors can use the platform to send quotation requests to suppliers, creating a digital marketplace around construction procurement.

The company says its database includes more than 12,000 companies and that the platform has processed approximately 600,000 quotation requests to date.

The new funding represents an expansion beyond procurement.

Project Suppliers wants to address one of the persistent financial challenges faced by construction suppliers: managing liquidity when payments are delayed.

AI-Powered Cash Flow Management

The company plans to develop cash flow management tools specifically for construction and MEP suppliers.

These products will include AI-powered forecasting capabilities designed to help businesses better understand their expected cash position and prepare for potential liquidity gaps.

Project Suppliers also plans to introduce financing products.

The goal is to give suppliers greater visibility into their cash flow while creating financial tools that can help them manage periods between delivering materials and receiving payment.

The company will initially roll out these products in Saudi Arabia before expanding across the GCC.

Saudi Construction Finance Is Growing

Project Suppliers is entering a Saudi market where construction supply chain finance is receiving increasing attention.

Construction materials platform BRKZ recently earmarked $18 million in debt financing for lending activity after raising $31 million in Series B funding.

Saudi Arabia's Public Investment Fund has also launched Tawrid, a supply chain financing platform.

Meanwhile, the Saudi Central Bank is developing rules for the sector.

The regulator put proposed supply chain finance rules out for consultation on August 26, covering both finance companies and intermediary platforms.

These developments point toward a broader push to improve financing across Saudi Arabia's supply chains.

A Large Construction Procurement Network

Project Suppliers' existing procurement platform gives the company an established network from which to build its financial products.

The platform already connects contractors and suppliers through quotation requests, giving Project Suppliers visibility into procurement activity.

Its database of more than 12,000 companies and approximately 600,000 quotation requests provides the foundation for its next phase.

The company is now looking to turn that procurement infrastructure into financial infrastructure for suppliers.

The challenge will be building financing products that can manage the specific payment cycles and risks associated with construction projects.

Expanding Across the GCC

Saudi Arabia will be the first market for Project Suppliers' new financial products.

Once the products are established locally, the company plans to expand them across the GCC.

The regional opportunity is closely connected to the continued growth of construction and infrastructure activity across Gulf markets.

For suppliers, access to predictable cash flow can be particularly important when projects involve long payment cycles and significant working-capital requirements.

Project Suppliers is positioning its combination of procurement data, AI forecasting, and financing as a way to address that gap.

The Next Phase

The SAR 3.75 million pre-seed round gives Project Suppliers capital to move beyond its core procurement marketplace and into financial services.

The company has not disclosed the identities of the angel investors participating in the round.

Its immediate focus will be developing and launching the new cash flow forecasting and financing products in Saudi Arabia.

If successful, Project Suppliers could evolve from a platform that helps construction companies find suppliers into one that also helps those suppliers manage the money generated by their projects.