Infra.Market, a leading B2B marketplace for construction materials, has successfully raised INR 1,050 crore (approximately USD 121 million) in its Series F pre-IPO funding round. This move has pushed the company’s valuation to an impressive USD 2.8 billion (INR 24,150 crore), marking a significant milestone ahead of its anticipated public listing later this year.
Details of Infra.Market Pre-IPO Funding
The funding was split into two parts:
- First Tranche (Series F): INR 498 crore, with Tiger Global leading the charge with INR 211 crore. Additional investments came from Evolvence Group (INR 168 crore) and Foundamental Fund (INR 119 crore).
- Second Tranche (Series F1): INR 551 crore was gathered from a mix of investors including Capri Global, Eudora Ventures, Kangaro Industries, and others. Notable individual investors included Ashish Kacholia and Nikhil Kamath.
Tiger Global’s participation is particularly noteworthy given their relatively low profile in 2024, where they only invested in two other entities.
Financial Performance and Business Growth
Infra.Market’s robust financial performance has been a key driver of investor confidence. For the financial year 2023-24 (FY24), the company reported:
- Revenue: A 25% jump to INR 14,743.4 crore from INR 11,890.8 crore the previous year.
- Profit After Tax: Doubled to INR 378 crore from INR 155 crore, showcasing robust growth.
The company’s success is driven by its broad range of private-label products and an aggressive expansion in manufacturing. With over 260 units, including 200 dedicated to concrete, Infra.Market now has the capacity to produce over 20 million cubic meters annually. Additionally, it has:
- Tile Manufacturing: 16 factories in Morbi, Gujarat, churning out over 60 million square meters of tiles each year.
- Walling Blocks: Seven facilities producing 2.4 million cubic meters.
Infra.Market IPO Strategy and Expansion Plans
Infra.Market has strategically partnered with leading financial institutions, including Kotak Mahindra Capital, IIFL Capital, Goldman Sachs, Jefferies, ICICI Securities, HSBC Securities, Motilal Oswal Financial Services, and Nuvama Wealth Management, to navigate its IPO process. The company plans to raise $500-700 million through its public listing.
Product Range and Market Presence
Since its inception in 2016 by Souvik Sengupta and Aaditya Sharda, Infra.Market has grown into a comprehensive supplier of construction materials, serving real estate developers, contractors, and architects. The company’s product line includes everything from structural elements like concrete and steel to finishing touches like tiles and sanitaryware, extending even into lifestyle products like appliances and modular kitchens.
The company’s footprint spans 20 states in India with exports reaching Dubai, Singapore, and Italy. Infra.Market is also involved in some high-profile projects, including the Mumbai Metro and Bengaluru’s Kempegowda Airport. Retail expansion includes more than 10,000 touchpoints and 30 flagship stores.
Navigating the Competitive Landscape
In this competitive arena, Infra.Market isn’t alone. Rivals like Zetwerk, which raised over INR 850 crore recently, and Aris Infra with INR 80 crore from Mukul Agrawal’s Param Capital, are also in the race.
Looking Ahead
With this latest funding, Infra.Market has not only solidified its standing but also set a clear trajectory towards its IPO. The company’s strategy to digitize and streamline procurement processes, combined with its expansive growth plans, positions it well for future success. As they prepare for their public market debut, all eyes will be on how Infra.Market leverages its newfound resources to maintain its upward trajectory in the construction materials sector.
For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.
