NEW DELHI: Nasdaq listed Autodesk Inc, one of the global leaders in computer-aided design (CAD) software, has signed a definitive agreement to acquire Pype, a AI based construction software provider, at an undisclosed amount.
Both the companies have offices in India and after acquiring Pype, Autodesk India expect to capture larger share of real estate and construction market which is looking to finish projects in time despite the delay caused by COVID-19 induced lockdown.
This acquisition is the latest of construction-based acquisitions by Autodesk in 2020, and the second in India after minority stake in Aurigo Software in April. The demand for construction software is likely to increase for faster completion in coming days and government is also planning to mandate few of them for its large projects.
“Several hurdles that India’s construction sector face include frequent miscommunication and workflow disruptions, leading to project delays and cost overrun. Automation presents an opportunity to do things better – technologies such as AI, BIM, and cloud-based collaboration can help to address these challenges for increased productivity, lower risks, and better quality of output,” said Autodesk CEO, Andrew Anagnost.
Autodesk India provides construction software to airport and highway projects in the country and is looking to work with real estate developers in the country.
Anagnost said that Pype employees based in India will be joining Autodesk. Pype’s software reduces manual entry and human error that can lead to rework, cost overruns and schedule delays on construction projects.
The company’s technology leverages artificial intelligence and machine learning to automatically analyze and extract critical construction data such as project plans and specifications to be used throughout the project lifecycle.
According to the latest report by the Ministry of Statistics and Programme Implementation, at least 355 projects have a cost overrun of Rs 3.88 lakh crore and about 552 projects have time escalation.
“Autodesk has approximately 500 employees in India, and the acquisition of Pype adds another 40 employees to the count. Pype’s technology and talent will help Autodesk construction cloud become the most advanced and automated project management solution within the industry landscape,” said Anagnost.
Autodesk said that acquisition will empower general contractors, subcontractors and owners to gain even more value from Autodesk Construction Cloud by automating critical construction workflows such as submittals and closeouts to increase productivity and mitigate project risk.
Since 2017, Autodesk has invested in nine construction technology startups. The company also acquired Assemble, BuildingConnected and PlanGrid; these three acquisitions alone total more than $ 1.1 billion.