This week, Gaston Remy from Nuqlea joins Patric and Shub to chat about nothing at all:
What makes Nuqlea a first-of-its-kind procurement model?
Why is Nuqlea more a "club" than a marketplace?
How does it work to have every construction stakeholder - from producers, wholesalers, financiers and contractors - be part of a procurement platform
What is the unfair advantage in Nuqlea's team?
And of course, how was it in Argentina when they became World Champions in Qatar 2022?
Nuqlea Builds Unique Digital Supply Chain Club
Nuqlea is building a "unique digital marketplace and club" for the construction materials supply chain in Latin America. The company serves as an "orchestrator" that brings together manufacturers, distributors, construction companies, financing partners, logistics providers, NGOs and government into an ecosystem. Nuqlea sees itself as a "digital club" that provides "transparency, clear rules, and trust validation" between parties that may not fully trust each other otherwise. It develops the technology and manages the information flow through this ecosystem. Nuqlea charges ecosystem partners an annual membership fee. The company has over 65 manufacturer partners, 10 financial institutions, 4 logistics partners and 40+ construction company customers today.
Tackling Latin America's Housing Shortage
There is a huge opportunity to improve access to housing and construction materials in Latin America through increased efficiency and transparency. 30-45% of people in Latin America lack access to "minimal, structurally adequate housing". Nuqlea's platform has already contributed to over 1,500 new affordable houses built in the past 6 months by streamlining purchasing, financing and logistics. Countries like Argentina have "complex economies and political challenges", but technology and transparency can enable "exponential progress". Nuqlea aims to "balance power" across manufacturers, distributors and contractors to increase efficiency.
Leveraging an Asset-Light Model
Nuqlea does not provide its own capital into transactions, but rather connects partners across the value chain and enables transactions. It sees itself as an "asset-light orchestrator" that leverages "third-party assets, expertise and experience" rather than building everything in-house. Nuqlea went a full year without a "single transaction" while building its ecosystem. It charges partners for "transformation, not transactions". This model avoids the intense capital needs of vertical integration. Nuqlea's founders come from corporate finance backgrounds, so they designed Nuqlea to be "self-sustaining" rather than relying on perpetual fundraising.
Corporate Credibility Attracts Partners
Nuqlea's founders Gaston and Pablo have strong credibility from their experience at top corporations which helps bring major suppliers onboard. Both founders have held "C-suite roles" at major industrial corporations like Dow Chemical. They understand "corporate decision-making, incentives and scorecards". Their credibility helps them "connect at the C-suite level" and gain corporate buy-in for Nuqlea's vision. They also know how to navigate "complex corporate matrix dynamics". Signing enterprise partners requires support from the "entire corporation", not just local sales teams. The founders' experience enabled Nuqlea to craft thorough partnership agreements that give corporate leadership confidence.
1,500+ Homes Built in 6 Months
Nuqlea helped provide the materials for over 1,500 new affordable houses built in Latin America in the "past 6 months". With plans and financing from governments, Nuqlea streamlined purchasing, logistics and supply chain management to turn financing into actual materials and finished homes. Housing is a major social need in the region, with millions lacking safe shelter. Nuqlea provides transparency into material costs, availability and delivery timelines. Its platform integrates and coordinates all steps from financing to construction. Nuqlea measures its "social impact" by the number of new homes it helps build, not just transaction volume. Its model aims to balance "economics and social good".
Construction Tech Requires Founder Adaptability
Construction tech trends and VC sentiments can "shift very quickly", so Gaston believes that need to be adaptable. What investors focus on and value can change "dramatically in just 12-18 months". In 2021, "growth was the top priority". Now "profitability and sustainability" are more important. This forces founders to be "flexible" operationally while sticking to their core values and vision. Economic cycles also impact startups differently - a downturn helps Nuqlea's model but may hurt others. Founders must "read signals" quickly and adjust while keeping focus on their North Star metrics. Rapid adjustment is crucial to "securing the next round" and surviving long-term.
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Keywords: Nuqlea, digital supply chain, construction materials, Latin America, marketplace, ecosystem, transparency, membership fee, manufacturers, distributors, housing shortage, affordable housing, financing, efficiency, asset-light model