London-based Prolo secures €4.9 million to bring AI-powered procurement to SME construction firms

Prolo , a London-based AI-powered procurement platform designed to support SME construction firms, has secured €4.9 million (£4.2 million) in Seed funding to fuel go-to-market sales and marketing efforts and accelerate new tech and product rollouts.

The oversubscribed round was led by Triple Point Ventures and joined by a consortium of leading VC firms, including Anamcara Capital, Concrete VC, Foundation Ventures, Haatch, Koro Capital, Love Ventures, and Portfolio Ventures.

James Morris-Manuel , founder and CEO of Prolo, said, “For decades, SME contractors have been penalised by a lack of price transparency and inefficient ordering, often paying a premium simply because they lack the time and purchasing power of the Tier-1 giants. Through scaling Virtual Walkthrough and my time at Matterport, we learned how to build robust tech that solves very real, very painful operational bottlenecks for the built environment. With Prolo, we are entirely shifting the dynamic of construction supply chains. The demand we are seeing right out of the gate is phenomenal.”

Prolo was founded in 2024 by James Morris-Manuel, a serial entrepreneur in PropTech who previously founded the startup Virtual Walkthrough, which was later acquired by Matterport. Following the exit, Morris-Manuel served as EMEA Managing Director at Matterport, establishing London as the company’s regional headquarters.

The company states that it provides an efficient procurement platform, optimising the acquisition of materials, equipment, and plant hire to secure the best market rates. It highlights that its service leverages AI, including Large Language Models (LLMs), Natural Language Processing (NLP), and voice transcription, to bypass outdated practices in the construction industry. This technology enhances decision-making, increases efficiency, and delivers a superior user experience.

According to the PropTech startup, procurement within the construction industry remains analogue and is ripe for disruption. Smaller contractors face the greatest impact from industry inefficiencies. Unlike tier-1 giants, they spend numerous hours calling builders’ merchants for quotes and absorb the costs of uncompetitive pricing. The Chartered Institute of Building reports that disruptions in the supply chain and manual workflows cause around 40% of projects to be delayed by an average of five months.

Prolo claims that it eliminates this friction by acting as an outsourced, AI-powered procurement team. It mentions that site managers can use WhatsApp, email, or a phone call to access Prolo’s team of AI and human experts. The experts and AI scan a nationwide network of over 185 suppliers to offer trade rates on orders such as bulk materials and specialist plant hire, which are usually reserved for Tier 1 giants.

The UK startup also offers flexible credit options for up to 90 days, counteracting standard industry payment terms, allowing customers to take on larger projects that grow their margins.

Sam Stone , Investor at Triple Point Ventures, said, “Construction companies are vital to the UK economy, and they will play an increasingly important role as the country looks to accelerate the delivery of new housing and infrastructure. Procurement remains one of the most manual and margin-sensitive parts of running a construction business, and Prolo has a huge opportunity to change that.

“By using AI to help firms automate procurement, find the right products at the best prices, and improve their margins, Prolo is solving a real and urgent problem for the industry. We’re excited to be backing James, a repeat founder with a strong track record, as he builds a category-defining business in construction procurement.”