By Gary Fleisher
In the dynamic world of offsite construction in England, the story of Modulous stands out — not just for its innovative approach but also for its recent financial struggles. Founded in 2018, Modulous aimed to revolutionize the modular housing sector. However, despite significant backing from venture capital investors such as Regal London and Cemex Ventures, and raising an impressive $12M US in Series A funding as recently as September 2022, the firm has faced daunting financial challenges.
The numbers paint a stark picture: Modulous reported a staggering loss of $12M US, contrasted with a relatively meager turnover of $116,000. This financial imbalance led to an unfortunate outcome for the company’s workforce. In late November, all 50 employees of Modulous were laid off, and as of now, they are still awaiting their final salary settlements.
Modulous was not just another company in the construction industry. It was known for its unique blend of physical and digital innovation in housing. Modulous, in its move into the US, was led by four women who were all senior staff at Katerra, another offsite construction firm. Overseeing the US team was the former head of building platform sales at Katerra.
The company developed a physical kit designed for the construction of multi-story, multi-occupancy buildings, coupled with a groundbreaking digital design tool named TESSA — an acronym for Tech Enabled Solutions for Sustainable Architecture. This dual approach was seen as a forward-thinking solution in the modular housing space.
However, the promising journey of Modulous took a downturn when the company announced its intention to enter administration on November 29, appointing Opus Restructuring for the process. The formal entry into administration is expected later this month, marking a definitive end to the firm’s operations.
The downfall of Modulous is not an isolated incident in the British modular housing sector. It follows in the footsteps of other similar businesses like Ilke Homes, House by Urban Splash, and Legal&General’s modular division — all of which have also ceased operations. This series of closures in the sector raises questions about the viability and future of modular housing in the UK.
As we observe the situation, it’s crucial to consider both the innovative strides made by these companies and the economic realities they faced. The story of Modulous serves as a reminder of the challenges that lie in balancing groundbreaking ideas with sustainable financial planning in the ever-evolving world of construction and housing.
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Gary Fleisher is a renowned blogger and commentator on construction and housing trends, known for his insightful analysis of the industry.
