PC: Entrepreneur
Infra.Market, a construction goods and services provider platform, has raised up to Rs 150 cr or about $18 million in the Series E2 funding round. Infra.Market has raised funds at a time when it had recently announced securing $50 million from Mars Fund three months ago.
Infra.Market’s board of directors has approved the issuance of 7,028 Series E2 preference shares at an issue price of Rs 213438.7 each to achieve the intended amount of Rs 150 crore or $18 million. As per RoC filings accessed, it has received Rs 76.3 cr out of the total amount. However, the sources of funds in the initial public offering came predominantly from Amit Vijaysinh Barad and Barad Sanjay Amarsinh, who together invested Rs 45 crore, while other funds came from individual shareholders.
Along with equity funding, the debt funding of Rs 75 crore ($9 million) has come from Innoven Capital for Infra.Market. The fundraising round comes on the heels of the company’s debt round closure of Rs 150 crore back in July. Post the fresh allotment, TheKredible estimates value Infra.Market at around $2.6 billion.
The new funding round appears to be a part of the series of a much larger $150-200 million funding round that Infra.Market is said to be targeting. It is also getting ready for an IPO and might file its draft red herring prospectus in preparation for executing this strategic step.
Infra.Market is one of the early movers in the construction material and infrastructure goods space since being founded in 2016 by Souvik Sengupta and Aaditya Sharda. The company mainly focuses on the infrastructure sector, with rising demand in the construction material segment.
Infra.Market has raised about $540 million so far through a mix of equity and debt funding. Of particular interest are the facts that the largest external stakes in the company is held by Tiger Global, followed by Accel and Nexus Ventures post the recent fund infusion.
Infra.Market has remained in excellent financial shape despite the pending IPO and subsequent funding rounds. The company has not filed its annual statements for FY24 yet, but its gross revenue increased by 89% to Rs 11,846 crore for FY23. However, this year, the profit margin had narrowed by 17% to Rs 155 crore.
Infra.Market competes with the likes of OfBusiness, Moglix, Zetwerk, MetalBook, etc. in the construction goods and services space. Interestingly, OfBusiness also plans to list itself on stock exchanges in FY26, which speaks volumes for the competitive dynamics involved here.
In conclusion, the successful fundraise by Infra.Market and its strategic growth plans re-establish it as a market leader in construction materials. Its focus on innovation, expansion of markets, and sustainability would ensure its sustained growth in the emerging, constantly changing infrastructure sector.
