In Nigeria’s rapidly expanding urban centers, where population growth continues to outpace infrastructure development, one of the lesser-discussed challenges faced by real estate developers is procurement. The seemingly straightforward task of sourcing construction materials — cement, steel, roofing sheets, tiles — can become a logistical maze, often plagued by inconsistent supply, unreliable vendors, and fluctuating prices.
For many developers, this complexity translates to costly delays, compromised material quality, and project overruns that impact not only bottom lines but also the structural integrity of the buildings themselves. In this environment, Cutstruct, a Lagos-based startup, has positioned itself as a crucial intermediary in the construction value chain, promising a more streamlined, transparent, and reliable approach to building procurement.
Now, the company has secured a fresh injection of capital to expand its vision. Cutstruct recently closed a $1.5 million seed round led by CRE Venture Capital, bringing its total funding to $2.4 million. Other backers include E3 Capital, Techstars, and Zedcrest. The company says the new funds will help scale operations and deepen its role as a centralized marketplace for construction materials in Nigeria.
Founded to address the fragmented nature of material sourcing in Nigeria, Cutstruct offers a digital marketplace where developers and contractors can procure all their building materials in one place. By consolidating negotiations, sourcing, and delivery into a single platform, the company aims to remove one of the most persistent inefficiencies in Nigeria’s construction ecosystem.
“Prior to Cutstruct, I dealt with several suppliers, and it was extremely chaotic,” said Dipo Johnson, CEO of J.O. Dabar Investments. “Tracking materials and ensuring quality across different suppliers was a nightmare.”
Cutstruct not only connects developers to vetted suppliers but also manages logistics, ensuring timely delivery and consistent quality. This approach has struck a chord with developers juggling tight schedules and complex builds.
“Using Cutstruct, I have noticed that I spend less time talking to suppliers and bargaining. My time management has drastically improved,” said Ogaba Sanni, CEO of Regent Real Estate. “I don’t have to worry that I’m getting a bad batch of cement or sharp sand that isn’t pure.”
Nigeria faces a well-documented housing deficit, with estimates suggesting a shortfall of over 20 million housing units. Delays in the construction pipeline — often due to procurement issues — exacerbate the problem.
By removing friction from procurement, Cutstruct is helping developers bring projects to market faster. “Working with Cutstruct has saved us time and money,” said Deji Johnson, CEO of Elara Developments. “It’s become a dependable part of how we build.”
Jessica Oguh, who leads Media & Communications at Cutstruct, said the company’s goal is not just to digitize procurement but to fundamentally improve how construction happens. “Our goal is to make construction smarter, faster, and better,” she said. “We believe builders should be able to focus on building, not chasing vendors or worrying about delays.”
Cutstruct’s model is not without challenges. Nigeria’s logistics landscape remains inconsistent, and quality control across a large and varied supplier base can be difficult to maintain. However, by focusing on service reliability and vendor accountability, the company is attempting to set a new standard.
The recent funding will go toward enhancing Cutstruct’s platform, growing its supplier network, and expanding its delivery capabilities. It also signals investor confidence in the broader opportunity to digitize supply chains in Africa’s construction sector — a space that has seen relatively little disruption compared to fintech or e-commerce.
As Nigeria’s real estate and infrastructure ambitions grow — fueled by urbanization and a swelling youth population — so too does the need for efficient, tech-enabled support systems. Cutstruct is betting that its platform can become that backbone.
In a sector where margins are tight and timelines are critical, solving the procurement puzzle could unlock significant value. For now, Cutstruct is one of the few startups attempting to do just that — building not only a business, but potentially, a foundation for Nigeria’s next generation of cities.