At first sight, the mechanical, electrical and plumbing (MEP) engineering work involved in construction doesn’t seem a prime target for disruption from artificial intelligence (AI). But Endra , a small Swedish start-up, takes a different view – and it has already signed up some of the world’s largest engineering consultancies for the platform it has developed.

Endra is the brainchild of two of its founders, Anton Juric and Niklas Lindgren, who previously launched and ultimately sold a business installing security systems in commercial buildings. “We saw something that stuck with us,” Juric recalls. “We had to work with teams on security system blueprints that used shockingly antiquated software.”

In time, the duo realised the same was true across the whole of the MEP engineering domain, which is full of time-consuming processes that are currently carried out manually, often using multiple different software products.

Engineers have to map out buildings, calculate loads and flows, and then plan where to place devices, cabling, ductwork piping most efficiently, effectively and aesthetically. Often, one small design change elsewhere in the building requires much of this work to be done all over again.

Juric and Lindgren believed modern technologies could help and approached David Rydberg and Gustav Hammarlund, two developers who had worked together on Goldman Sachs’ low-latency trading infrastructure in Stockholm. Together, the team built Endra, launching the company in 2023.

“Endra is a purpose-built AI platform for MEP engineering, made for engineering consultancies,” explains Juric. “The platform ingests standard building model files, integrates with building information modelling tools, and reconstructs the building in a detailed 3D environment. From there it automates the core engineering workflow — system design, device placement, routing, model generation, and compliance-ready documentation — producing both 2D and 3D deliverables.”

The business has taken off quickly. Endra now has 30 enterprise clients, including well-known names such as AtkinsRéalis, Ramboll, Buro Happold, WSP, Hoare Lea, and AFRY. Last month, the company announced is latest fundraising, a $50 million Series A round led by Andreessen Horowitz, which takes the total amount of investment it has secured to almost $75 million.

Juric and Lindgren are eyeing new markets, having largely focused on domestic Swedish clients to date. This week, the business is announcing new office openings in both the US and the UK, with Juric relocating to New York to oversee the latter expansion.

North America, in particular, has huge potential for businesses such as Endra, with many engineers struggling to recruit enough staff to work in the same way as in the past. Robert Ioanna, the CTO of the American MEP engineer Syska Hennessy, says: “There is lots of work to be done to get AI to help MEP but we are rooting for any and all options that help us combat the massive talent shortage especially in electrical engineers.”

Endra’s additional funding will support its plans for international expansion, but the founders are also keen to invest in research and development. The technology developed so far is largely focused on electrical design, but Endra is now committed to rolling out similar tools for mechanical and plumbing work.

That will be important if the start-up is to maintain its growth. Endra launched commercial products earlier this year and has gone from zero to seven-figure annual recurring revenues in a matter of months. But competition in the space is hotting up – for example, Canada’s Augmenta last year raised $10 million of new funding to expand in the same segment of MEP; Nasdaq-listed Autodesk is another rival.

Still, there is plenty of business to aim at. The global MEP services market is estimated to be worth more than $150 billion annually according to a study from Research & Markets, and is growing fast as architects and engineers are challenged to build more sustainable developments.

“As governments and private entities push for greener buildings, the demand for MEP design and services that optimize energy use and reduce environmental impact is rising,” reports the study. “This includes the integration of energy-efficient HVAC systems, low-flow water fixtures, and advanced electrical systems that can manage energy consumption more effectively.”

Moreover, MEP engineering typically accounts for up to 5% of total project costs on every building built, providing developers and architects with a valuable incentive to manage this work more efficiently.

“MEP is a substantial slice of one of the biggest industries on earth and because it sits on the critical path of every building, when MEP design is the bottleneck, entire construction timelines slip,” adds Juric. “Having lived on the wrong side of that bottleneck, I can tell you that solving it is an enormous opportunity.”