Softbank Group is reportedly investing $ 200 million Katerra, According to a report, a startup that hoped to remake the construction industry with a vertically integrated approach Wall Street Journal.
Katerra shareholders approved the new investment on Wednesday, with Softbank’s new lifeline netting nearly $ 2 billion, which the Japanese technology group had already committed to the venture.
The bailout funds, which saved the bailout from bankruptcy, would come from SoftBank’s Vision Fund 1, the journal quoted Katra’s chief executive officer Paul Kibgaard as telling the company’s shareholders in a message.
As part of the funding, the SoftBank-funded financial services firm, Greensill Capital, is canceling approximately $ 435 million in debt in exchange for a 5% stake in the company, according to the Journal’s report.
This new bailout actually marks the second time that Softbank has stepped up to give Catera $ 200 million this year alone.
In May, when Kibsgaard was the former head of the oil services developer Schlumberger, To fix the company’s finances, Softbank poured $ 200 million into the company so that Kibsgaard could fix the ship there, according to the Journal’s report.
Since its introduction in 2015, Katra has raised several rounds of several million dollars from the Japanese Technology Group. Back in 2018. When the company closed at $ 865 million in financing, Katra was claiming bookings worth $ 1.3 billion for commercial and residential projects from hospitality to student housing. This is a large number, but according to US Census Bureau data, a fraction of the $ 1 trillion spent on construction in the month of November 2018.
Katra has suffered more than delays and costs on some projects, while the COVID-19 epidemic delays others. And the irregularities that the company detected in accounting practices also added to the headaches, according to the Journal.
Despite its misinterpretations, Katerra is on track to make serious cash this year, with revenues between $ 1.5 billion and $ 2 billion, according to details given to the Kibsgaard Journal.