After Acquiring Palo Alto-Based Crews By Core, Riyadh-Based WakeCap Is Doubling Down On Its Role As a Global Leader In Contech WakeCap founder and CEO Dr. Hassan Albalawi is building a business centered on improving workforce productivity in the construction industry.
By Tamara Pupic
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Back in 2017, Saudi entrepreneur Dr. Hassan Albalawi founded the Riyadh-headquartered construction technology (aka contech) startup WakeCap out of a conviction that technology held the key to improving the future of the construction industry. And while the construction sector may seem like a good choice for testing one's entrepreneurial strengths (keeping in mind that it is globally valued at US$12 trillion and that it employs 200 million people), it is, however, also known to rely on offline and inefficient processes that lead to miscommunication, poor collaboration, and worker shortages, and ultimately to crews wasting hours per week on non-productive tasks. "I was convinced that technology could mitigate risks and improve operational processes on sites, while saving site owners money," Dr. Albalawi says. "It inspired me to create a solution–and a company–that would improve the industry for everyone in it."
This is how Dr. Albalawi went on to launch WakeCap with co-founder Ishita Sood by his side, and it now has offices in Dubai, Riyadh, and San Francisco. According to Dr. Albalawi, such a structure has allowed his company to leverage the two locations of the Middle East's booming construction industry, while also being right in the centre of one of the most advanced technology capitals of the world. In terms of its offering, WakeCap provides an internet of things (IoT)-based enterprise solution to monitor workforce activity, and thereby collect profit-impacting data on actual hours, progress, and safety, in large construction projects. In gathering data through a knob that attaches to a standard hard hat worn by site workers, WakeCap offers real-time visibility and highly accurate project data through its innovative wearable and cloud solution.
Today, the WakeCap offering is used on more than 30 mega sites and giga sites in Saudi Arabia and the United States, each with more than 2,000 workers per project, and it has cumulatively logged over 70 million worker hours. "One of the biggest developers in the region said that by implementing WakeCap, they reduced the number of 'non-productive' worker hours on site from 3.5 hours a day to just 45 minutes," Dr. Albalawi shares. "On a site with 1,000 workers or more, that's a significant cost saving. We always believed that improving visibility and transparency benefits everyone, from site owners to consultants and site workers, and seeing how our technology has done exactly that is incredibly motivating."
However, Dr. Albalawi's entrepreneurial path was filled with challenges, which included the industry's resistance to change, as well as its relatively slow adoption of technology. "Many construction stakeholders have traditionally been wary of digital solutions, partly because very few have catered specifically to the unique and dynamic nature of construction sites," he explains. "There's also a general perception that technology can't address each site's uniqueness, which adds to the hesitancy. To overcome these challenges, we focused on education and demonstrating clear value. Change management in construction cannot be forced; it requires a strategy that highlights gradual improvements. By showing how our solution saves time, and integrates seamlessly into existing site infrastructure (taking less than a minute per worker to set up without disrupting workflows), we were able to gain trust and buy-in from stakeholders."
Given Dr. Albalawi's own experiences in this domain, he advises other entrepreneurs in the sector to have a deep understanding of the issues that the industry faces. "Understand where the challenges come from, and why (don't just stick to the surface level), and tailor your solutions to address these pain points directly," Dr. Albalawi says. "Then, I'd say gradual implementation is more likely to get accepted and integrated successfully. Lastly, demonstrate the value of your solution with the use of reliable data to show tangible benefits. Your transparency in this aspect also builds trust."
In June 2024, WakeCap acquired Crews by Core, which is a Palo Alto-based artificial intelligence (AI)-powered project delivery platform for the construction industry. Its solution is expected to allow WakeCap to create the world's most comprehensive software as a service (SaaS) and IoT solution for construction mega projects. "Acquiring Crews by Core significantly expands WakeCap's capabilities, making us the most comprehensive platform for construction operations," Dr. Albalawi adds. "This acquisition allows us to integrate AI-powered field scheduling with our existing IoT solutions, providing a single platform that supports owners and contractors throughout project delivery. By combining our technologies, we bring the latest cutting-edge tools available worldwide to the Middle East, enhancing productivity, safety, and profitability on job sites."
WakeCap founder and CEO Dr. Hassan Albalawi and Crews By Core founder Di-Ann Eisnor signing the acquisition deal. Source: WakeCap
When making the decision about acquiring Crews by Core, Dr. Albalawi says that it helped knowing that its founder Di-Ann Eisnor and her team had worked on some of Silicon Valley's most notable enterprises, including fintech company Paypal, traffic navigation startup Waze, internet browser Google Chrome, and big data analytics software platform Palantir. "They [Eisnor and her team] know how to scale technology platforms," Dr. Albalawi points out, which is a nod to how he sees the acquisition helping WakeCap in the long term.
For other entrepreneurs negotiating an acquisition deal, Dr. Albalawi advises them to go with trust when it comes to the "other" side, but also to verify it. "Thoroughly investigate potential partners," Dr. Albalawi explains. "Ensure they share your values in order to create a seamless and harmonious working relationship." Plus, having a common goal would enhance synergy and effectiveness, with Dr. Albalawi also highlighting that any acquisition deal should lead to accelerating the acquirer's core business. "Scale up together, and leverage each other's strengths," he says. "Work collaboratively to harness opportunities, ensuring that both entities benefit from what the other can offer."
WakeCap's acquisition of Crews by Ciore is considered to be one of the first acquisitions of a Silicon Valley tech startup by a Saudi company, and according to Dr. Albalawi, it is a testament of the innovative potential birthed by the growth of the construction sector in the GCC.
Through the acquisition, WakeCap will open an R&D headquarters in Silicon Valley, though the technologies of these two companies have already been deployed across large sites and mega projects in the United States, Saudi Arabia, UAE, and Japan, managing tens of thousands of workers performing millions of hours of labor each year. Customers include energy giant Saudi Aramco, Saudi Arabia's Public Investment Fund-owned developer Jeddah Central Development Co., Japanese construction companies Kajima and Takenaka, and New York-based contractor Apex Building Group.
Such accomplishments bode well for the future of WakeCap, and Dr. Albalawi believes that the industry at large is going to benefit as a result as well. "The contech sector in the GCC is undergoing significant transformation, particularly in Saudi Arabia," he says. "Initiatives like the National Transformation Program [an economic action plan included in Saudi Arabia's Vision 2030 development plan] are crucial in driving digital transformation, enhancing governance, and improving resource sustainability. These initiatives align with Vision 2030, which aims to provide innovative housing to over 85% of the urban population. This creates immense opportunities for proptech companies."
'TREP TALK: WakeCap founder and CEO Dr. Hassan Albalawi shares his tips for entrepreneurs
Empower your team "As a technology company, fostering an innovative work culture is essential. Our diverse team, drawing expertise from various global regions, plays a critical role in our success. Ensuring that each team member feels valued and empowered to contribute has significantly driven our growth and the continuous improvement of our solutions."
Collaboration is key "Expanding globally has underscored the importance of strategic partnerships. It helps solidify our global presence and enables us to stay ahead of the game. By collaborating with industry leaders, we've been able to expand our suite of solutions and harness cutting-edge technologies."
Focus on gradual change, and demonstrate clear value "This has been crucial in overcoming resistance to new technologies. In an industry traditionally wary of digital solutions, showing how our IoT-based innovations can seamlessly integrate into existing workflows and improve safety and productivity has been vital. This approach helped us to build trust and encourage our customers to adopt new technologies."
