One of Katerra's completed projects Katerra

Construction startup Katerra is shutting down after six years in operation, according to a person familiar with the matter.

Katerra has raised about $2 billion from investors since its founding and had “promised to shake up the construction industry,” Bloomberg’s Sarah McBride reports, with modular construction units, prefabricated parts, and home construction factories. As of February 2020, Katerra’s marketing materials reported 8,000 employees across the globe, with operations in the U.S., India, and Saudi Arabia.

With major cash infusions from SoftBank and others, Katerra grew quickly, in part by acquiring smaller construction companies. But integrating those businesses proved difficult, and the company was forced to deal with construction delays and issues in trying to perfect its modules. The person who described Katerra’s closing asked not to be identified because the information is private.

In 2019, Katerra said it would cut 200 jobs, even after raising $865 million from investors the previous year. The company also shut down a factory in Phoenix, with the intention of focusing on a more highly automated facility in California.

SoftBank declined to comment on the company’s dismantling. Representatives for Katerra did not respond to requests for comment. Tech news site The Information earlier reported the news.

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