Bengaluru-based startup Mad Over Buildings (MOB), which streamlines procurement and financing of construction and interior materials, has signed a term sheet to raise ₹30 crore in a funding round led by an institutional investor. The capital will support its aggressive geographic expansion and technology upgrades.
- ₹30 crore raise led by institutional investor with existing backers participating
- Plans to expand from Bengaluru to Mumbai and 12+ cities within nine months
- Focus on embedded credit financing and asset-light ‘shadow-hub’ fulfillment model
What happened
Mad Over Buildings, a Bengaluru-based marketplace for construction and interior materials, has signed a term sheet to raise ₹30 crore (approximately $3.5 million). This round is led by an unnamed institutional investor along with participation from existing shareholders, valuing the company at ₹180 crore post-money. Founded in 2021 by Kumar Vivek, MOB provides architects, contractors, and developers access to faster procurement solutions combined with embedded financing options.
The fresh capital will be invested primarily in geographic expansion, technology enhancement, and bolstering its credit-led procurement ecosystem. Currently operational in Bengaluru, MOB plans to enter Mumbai immediately after the fundraise and aims to expand to over 12 additional cities within the next six to nine months. The company offers same-day and now 1-4 hour deliveries via its online and app platforms, targeting a streamlined and cost-effective supply chain.
Why it matters
India’s construction supply chain is traditionally fragmented, slow, and heavily reliant on credit, which creates inefficiencies and delays for project stakeholders. MOB’s model integrates embedded credit financing directly at the point of purchase in partnership with Muthoot Finance, eliminating reliance on traditional dealer credit arrangements. This innovation addresses one of the industry’s biggest pain points - financing accessibility for architects and contractors.
Additionally, MOB adopts an asset-light fulfillment approach called the ‘shadow-hub’ model, utilizing existing warehouses of brand partners rather than investing in costly dark stores or warehousing. This allows MOB to aggressively scale across cities without heavy capital expenditure, a crucial advantage in conquering India’s vast and varied building products market that is projected to reach $150 billion by 2028.
What to watch next
Key developments will include MOB’s geographic rollout, starting with Mumbai and expanding to new cities, testing how quickly and effectively it can scale its supply chain and embedded credit model in diverse regional markets. Observers will also track its technological improvements aimed at accelerating delivery speeds and enhancing platform usability for its growing client base, which currently exceeds 750 active users.
Furthermore, investor appetite for startups disrupting traditional sectors like construction materials through quick commerce models will be notable. With MOB raising capital alongside firms like HomeRun, which is reportedly seeking $10 million, the space is becoming a focus area for funding and innovation that could reshape procurement and financing dynamics in India’s high-value construction ecosystem.