Exclusive: Infra.Market Bags INR 1,050 Cr In Pre-IPO Round At $2.8 Bn Valuation

IPO-bound Infra.Market has raised INR 1,050 Cr ($121 Mn) in its pre-IPO round at a valuation of about $2.8 Bn (INR 24,150 Cr), a jump of over 10% from its valuation of $2.5 Bn during the previous funding round, sources told Inc42.

The fundraise, termed as its Series F round, saw participation from existing investors Tiger Global, Foundamental GmbH, Evolvence, among others. Nikhil Kamath, Ashish Kacholia, Abhijit Pai, Sumeet Kanwar, Nuvama, and Capri Global were also part of the round. 

Notably, Kamath, Capri Global, Kanwar and Kacholia acquired stakes in RDC Concrete, a subsidiary of Infra.Market which was looking to go public, last year. However, the startup changed its plans and decided to go for an initial public offering (IPO) of Infra.Market. 

Infra.Market declined to comment on Inc42’s queries on the latest funding round and its IPO plans.

In August last year, it was reported that Infra.Market was eyeing an IPO of $500 Mn to $700 Mn and had roped in Kotak Mahindra Capital, IIFL Capital, Goldman Sachs, Jefferies, ICICI Securities, HSBC Securities, Motilal Oswal Financial Services, and Nuvama Wealth Management as the bankers for the public issue.

With the fresh funding, the startup is all set to file its draft red herring prospectus (DRHP), the sources added. 

Founded in 2016 by Aaditya Sharda and Souvik Sengupta, Infra.Market manufactures construction materials under its private-label brands. It has a B2B, retail, and B2C network and leverages technology to digitise the procurement process.

On the financial front, its net profit surged 144% to INR 378 Cr in FY24 from INR 155  Cr in the previous fiscal year. Operating revenue zoomed 23% to INR 14,530 Cr from INR 11,846.5 Cr in FY23.

The increase in revenue came on the back of the increasing number of private label brands in its portfolio. 

Infra.Market primarily earns revenue by selling construction materials, including cement, paints, chemicals, and tools. Its total revenue stood at INR 14,743.4 Cr in FY24, up 25% from INR 11,890.8 Cr in the previous year. 

The startup operates more than 260 manufacturing units. Of these, more than 200 units are for concrete production, and it has a total capacity of over 20 Mn cubic metres annually. Besides, the startup has more than 16 factories in Morbi in Gujarat for manufacturing tiles, with a total annual capacity of 60 Mn square metres, and 7 facilities for walling blocks with a capacity of 2.4 Mn cubic metres.

Overall, Infra.Market has raised a total funding of over $800 Mn to date.

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