Remi - The Marketplace for Roofing

Company & Team Introduction

Remi is a leading roofing marketplace that connects homeowners in need of a new roof with licensed roofing contractors in their area. The company was founded in 2022 by an impressive trio of Utah-based entrepreneurs: Brant Choate (CTO), Doug Barnett (CEO), and Reno Mendenhall (President, CRO). Prior to Remi, Brant was Head of Product and later Head of Growth at Podium, helping the company scale from 100+ customers to 20000+ in just over three years. Doug and Reno previously worked together at Vivint, with Doug as SVP of Marketing and Retail while Reno served as Sr. Director of Solar. This blend of industry expertise, leadership, technical ability, and sales/marketing experience will be a nightmare for existing players in the space. Remi is based out of Lehi, Utah and has scaled their team to ~49 employees.

Product Overview

Remi’s marketplace is the result of reimagining the roofing process from the ground up to make it as easy and efficient as possible. This allows contractors to spend more time fixing roofs and less time generating leads, while homeowners get a central software platform to manage project organization, communication, and paperwork and a faster process. The company’s technology leverages satellite imaging and its advanced pricing algorithm to provide customers with guaranteed accurate quotes quicker and easier than ever before. Some other advantages of using Remi include a workmanship warranty where any problems that arise during installation are covered by Remi, browsing from exclusively licensed and insured contractors, receiving consistent project updates + expert knowledge to aid with any questions, and proactively working with contractors through the process to ensure no delays.

Total Addressable Market

Although not a ‘sexy’ investment vertical, the roofing industry is nothing short of enormous. According to Statista, there were 128 million+ houses in the US in 2021, each with a roof that requires maintenance and, over time, will be replaced. Precedence Research estimates the total addressable market for roofing was as large as $116.3B in 2023 and is forecasting a healthy 4.33% CAGR through 2033, inflating the market to over $177B, with industry growth driven primarily by government subsidies and laws for clean energy/energy efficiency.

Business Model & The Numbers

Remi operates a simple transaction-based business model, where it takes a fee for each transaction facilitated through their platform. Although Remi hasn’t publicly released revenue figures, it has been experiencing meteoric growth of 650% and has been operating profitability essentially since its inception. This gives Remi a rare combination of massive market opportunity, high growth/PMF, and sustainability/profitability. Another interesting aspect of their business model is aggregating demand via partnering with large corporations with massive client bases needing new roofs/maintenience.

Traction

Just 18 months after launching, Remi's market pull has been strong. The company has already helped replace thousands of roofs and secured a massive partnership with SunRun, America's #1 home solar energy company. SunRun reported in June of this year that the company now has over 984,000 customers.

Competitors

Remi’s technology-focused approach to roofing has allowed them to set themselves apart from traditional players in the industry. The market is extremely fragmented, with many small-time contractors who are well…roofers, not technologists. It would be nearly impossible for them to build a software platform and pricing based on satellite imaging. So, rather than looking at Remi as another competitor, think of Remi as an industry enabler. Remi empowers this fragmented industry, saving contractors time via satellite imaging-based quotes and generating high-quality leads so they can do what they do best: fix roofs. As for larger technology-focused companies in the space, Roofer.com is a formidable competitor to Remi, just with a different approach to market. Instead of using satellite imaging to price quotes, Roofer.com uses drones. Another differentiator between the two companies is that Remi is simply connecting 3rd party contractors and people/companies in need of a new roof, while Roofer.com has chosen to vertically integrate and build out a team of employees to do these roofing jobs. They do state while 3rd party contracting is possible; it is not a core focus for them. Roofer.com raised a $7.5M seed round in early 2024, and the company is based in Dallas, Texas.

Funding

Remi has raised two rounds of funding since its inception in 2022. The company’s first capital was raised in March 2022 through its participation in Y Combinator’s Winter 22 batch, receiving the standard 500K investment for 7% equity as part of YC’s incubation program. Yesterday, the company announced that it had raised a $21M Series A round from a group of elite investors, with Pelion Venture Partners leading the round and participation from names such as Y Combinator doubling down on their initial investment and Cervin Ventures in addition to a list of Utah based angels such as Todd Peterson (Founder, Vivint NYSE: VVNT) Blake Murray (Founder, Divvy acq. by Bill.com), Adam Edmunds (CEO, Entrata), and Todd Santiago (CRO, Vivint NYSE: VVNT) among those participating in the round.