GoFor Industries plans to bring its on-demand last-mile delivery service for the construction industry to more markets in the U.S. and Canada after closing on C$9.8 million in seed funding.
The Canadian startup announced the new funding on Wednesday. The capital will help GoFor scale as everyone from construction companies to do-it-yourself home improvement enthusiasts increasingly embraces buying building materials online.
“It’s forcing a transformation — a move to e-commerce — in verticals that have been laggards for a while,” GoFor CEO Brad Rollo told FreightWaves.
Builders VC led the seed round with CEMEX Ventures, Mucker Capital, Plug and Play Ventures, Panache Ventures, I2BF Global Ventures and the Capital Angel Network.
GoFor plans to use the new capital to launch a dispatch platform, GoFor Dispatch, to help retailers or fleet operators manage their fleets. Additionally, the funding will accelerate the expansion of its retail partner network in North America.
Volumes surge during pandemic
GoFor has seen delivery volumes surge fivefold during the pandemic, Rollo said. As the company expands its footprint, it hopes to capture more consumer-level business.
“We’ve been serving big construction companies and big homebuilders. Now we’re stretching to the consumer side. It’s DIY time for a lot of people,” Rollo said.
GoFor currently operates in about 60 cities in the U.S. and Canada, offering on-demand deliveries of construction materials in two to three hours. While COVID-19 halted a lot of construction activity, the move toward e-commerce and direct deliveries of building materials has ultimately been a more powerful force.
In the near term, GoFor plans to expand into 12 to 15 new markets. Rollo said cities on the East Coast and in Florida, Seattle and Portland, Oregon, are attractive options.
GoFor operates with an asset-light model, partnering with owner-operators and fleets for the deliveries, primarily with courier-type vehicles. Fleet capacity changes based on demand.
CEMEX announced an undisclosed investment in GoFor in September.