ConTech startup Xpanner raises $7.8 million, propelling its global business expansion

ConTech startup Xpanner raises $7.8 million, propelling its global business expansion

Xpanner Inc.

Xpanner Inc., a ConTech (smart construction) startup, successfully raised USD 7.8 million in funding.  Xpanner attracted prominent investors, including Korea Investment Partners and KB Investment in April, followed by STIC Ventures and the Korea Technology Finance Corporation (KOTEC) in May. The substantial amount of funding from South Korea’s top-tier VCs and the government finance institution has captured the interest of the investment and startup industries. This is particularly noteworthy given the current downturn in investment sentiment towards startups.

Xpanner’s core business model is the automation of construction sites utilizing robotics technology. The company is digitally innovating earthwork construction sites with its proprietary automation solution called “Mango” to aid in positioning and operations of a variety of construction equipment. Furthermore, Xpanner offers smart construction solutions integrated with Mango, customized to meet the specific requirements of each site. Xpanner has successfully provided smart construction solutions, such as a Building Information Modeling (BIM)-based integrated control system for five sites.

In conjunction with its fundraising endeavors, Xpanner is poised to accelerate its business expansion into the global market. As part of this strategy, it established its North American subsidiary in November 2022, and forged partnerships with Geotab and PIRTEK, active players in the smart construction and construction machinery sectors in North America. Xpanner also partnered with international smart construction solution providers, such as Infrakit (Finland), MOBA (Germany), Engcon (Sweden), Steelwrist (Sweden), and JK (Korea) etc. to expand its presence in the North American market. Furthermore, the company recently began collaborations with Japanese construction equipment and ConTech companies. This move opens up new possibilities for Xpanner to tap into the Japanese market, leveraging its growing global networks.

Xpanner has gained recognition both at home and abroad for its accomplishments and potential. In April 2022, BuiltWorlds, the worlds’ largest construction conference, listed Xpanner among its “Top 50 Startups” in the construction equipment management category. In December 2022, the South Korean Ministry of Land, Infrastructure and Transport invited Xpanner to help launch “One Team Korea”, the Ministry’s initiative to assist Korean companies to win more overseas construction projects. Through this involvement, Xpanner was able to strengthen its networks with key government agencies, large corporations, and other startups. These public acknowledgements and relationships have been yielding tangible results for the Xpanner’s efforts to expand into the global market. It is currently in discussions with multiple construction companies, all of which are ranked among the Top 10 players in the construction capability assessment, regarding collaborations for at least four sites in North America and the Middle East. Xpanner has also formed a start-up support partnership with Shinhan Financial Group, which owns one of the largest banks in Korea, and established a cooperative relationship.

Korea Investment Partners, which is the largest venture capital firm in Korea, also participated in this investment. Sang Joon Park, Executive Director of the company, explained the reason for the investment, “Xpanner’s automation solution was developed by members who have brought a wealth of experience from global manufacturers such as Volvo, Doosan, and Bobcat, and it is already applied to a plenty of fields. We expect to collaborate with domestic and foreign construction companies in various projects based on their technology and business abilities.”

Henri Lee, CEO and co-founder of Xpanner, said, “Xpanner’s goal is to create a fresh and sound smart construction ecosystem built on diversity. We will continue to exert all possible efforts to make safer and more sustainable construction sites based on cooperations with various ConTech companies.”

Since its establishment in May 2020, Xpanner has generated cumulative sales of USD 7.8 million within just three years. The startup has secured a total of over USD 9.4 million in cumulative investments so far.

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Company Name: Xpanner Inc.
Contact Person: Charlie Jo, Marketing team of Xpanner
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Country: South Korea