Ashish Kacholia-led investors buy 10% stake in RDC Concrete
- Infra.Market sold RDC for $20 million in a deal that valued the company at $225 million
Mumbai: Tiger Global-backed business-to-business construction material maker Infra.Market has sold around 10% stake in RDC Concrete to investors led by Ashish Kacholia for $20 million. The deal valued the company at $225 million.
Infra.Market's divestment in RDC Concrete comes ahead of its IPO planned in the near future, the company said in a release.
Infra.Market acquired RDC Concrete, a ready-mix concrete company, for $90 million in 2021. In June this year, the company was in talks with Varde Partners to raise $150 million through the issuance of convertible instruments. That round is, however, yet to close.
The company counts Accel Partners, Evolvence India, Sistema Asia Fund, Foundamental Gmbh and Nexus Venture Partners as its other investors. In June 2022, the company raised $50 million in growth capital from Liquidity Group’s MARS Unicorn Fund, valuing it at $2.5 billion.
Founded by Souvik Sengupta and Aaditya Sharda in 2016, Infra.Market uses technology to provide a procurement experience for players in the construction ecosystem. It focuses on branded high-volume construction products, addressing challenges like lack of price transparency, unreliable quality, fragmented vendor base, and inefficient logistics. The company operates across 20 states in India and has recently set up its global offices in Singapore and Dubai.
"The investment in RDC reflects our commitment to driving growth and fostering leadership within the construction industry. We look forward to witnessing RDC's continued evolution and contributing to its promising journey in the sector as we welcome the new investors in the company,” said Sengupta.
As per the release, the company owns 100 plants across 48 cities and expects to have around 180 RMC plants by the end of FY25. “RDC Concrete is expected to have a revenue of ₹2,000 crore by the end of the current financial year. RDC Concrete’s revenue and its EBITDA has grown over 2x since its acquisition in 2021,” the release said.
For the financial year ended March, Infra.market clocked ₹11,000 crore of consolidated revenues with ₹650 crore of Ebitda and ₹300 crore in profit after tax, a person in the know said. The company is yet to officially file its results.
India’s concrete penetration is the lowest among large economies of the world. The company, however, noted the growing shift in India to manufactured concrete from hand-mixed concrete, particularly in non-metro areas. Local players still dominate this industry with no large brands in the concrete manufacturing space in India.
“Our interactions with the team at RDC has left us with a great understanding of the opportunities in India’s ready mix concrete market and the potential for the team at RDC to tap the opportunities,” ace investor Ashish Kacholia said.
The overall expansion in the construction and infrastructure sector in India and the surge in construction of metros, airports, and highways continue to provide substantial growth opportunities for construction material companies in India.
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First Published:4 Dec 2023, 03:02 PM IST
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