Neocrete, a New Zealand company that develops technology to cut the carbon and cost of concrete, has raised $3.5 million in a funding round led by returning investor Wavemaker Ventures, with participation from Icehouse Ventures and new investor Catalytic Capital for Climate and Health, a vehicle backed by Temasek Trust.

In a statement on Wednesday, Temasek said the round follows a $4 million seed round in 2024, also led by Wavemaker. Neocrete will utilize the funding to expand into European and U.S. markets and to continue commercial deployment in Southeast Asia.

Neocrete makes additives that allow low-quality, low-carbon materials such as poor-grade fly ash and volcanic ash to replace 30 to 50 percent of the cement in concrete. The innovation can reduce the concrete’s embodied carbon and cost while maintaining strength and durability.

Neocrete’s additives are being used commercially in Brunei by Readymix Brunei, the country’s largest ready-mix concrete supplier, which began piloting the technology in 2025. Readymix Brunei used the additive to replace 30 percent of the cement in commercial projects, pouring 3,700 cubic meters to date, cutting embodied carbon by 25 percent and saving nearly $20,000.

The buildings and construction sector accounts for about 37 percent of global carbon emissions, and cement manufacturing for around 8 percent, according to Neocrete.

Zarina Alexander, Neocrete’s chief executive and co-founder, said green premiums did not work in the concrete industry. The Brunei projects showed producers could cut carbon and cost without trade-offs.

Ryan Tan, head of Catalytic Capital for Climate and Health, said Neocrete’s lower cost and higher performance addressed a key barrier to adopting lower-carbon cement.

Paul Santos, co-founder and managing partner of Wavemaker, said the technology had been shown to lower cement use by up to 30 percent, without compromising strength.

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