Infra.Market raises over $120 mn at $2.7 bln valuation, taps bankers for an IPO

The round also saw participation from Tiger Global, Evolvence, and Foundamental.

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Infra.Market, which plans to go public later this year, has appointed Kotak Mahindra Capital, IIFL Capital, Goldman Sachs, Jefferies, ICICI Securities, HSBC Securities, Motilal Oswal Financial Services, and Nuvama Wealth Management, to manage its IPO, according to a person familiar with the matter.

Prominent investors such as Ashish Kacholia, Nikhil Kamath, and Abhijit Pai also participated in the fundraise, the person added. These investors did not immediately respond to Mint’s requests for comment.

“Infra.Market is unquestionably a generational company that represents the best qualities of a venture-backed success story: category dominance, outsized growth at scale, and best-in-class profitability," said Shubhankar Bhattacharya, general partner at Foundamental, confirming the fundraise.

Infra.Market declined to comment on the development, as did a spokesperson for Jefferies. Emails sent to the investment banks and other investors did not elicit immediate responses.

This fundraise comes less than a year after the Maharashtra-based startup raised $50 million ( ₹400 crore) from Mars Unicorn Fund at a $2.5 billion valuation. Infra.Market’s investor roster also includes Accel and Nexus Venture Partners.

An infra wave

Founded in 2016 by Souvik Sengupta and Aaditya Sharda, Infra.Market started as an enterprise platform leveraging technology to streamline procurement in the construction ecosystem. The company has since expanded its portfolio, focusing on high-volume construction products under private labels while addressing issues like price transparency, quality control, and logistics inefficiencies.

Infra.Market’s growth has accelerated as geopolitical shifts and inflationary pressures prompt companies to relocate manufacturing to India. This momentum has been bolstered by the Indian government’s infrastructure push and initiatives like the production-linked incentive scheme and the “China-plus one" strategy.

The company reported revenues of ₹14,530 crore in FY24, up from ₹11,846.5 crore the previous year, while its profit after tax surged to ₹378 crore from ₹155 crore in FY23. Much of this growth has been driven by the increasing contribution of private-label brands in categories like concrete, walling products, paint, electricals, and tiles, which form a significant share of its revenue.

Infra.Market also operates a robust manufacturing and distribution network, with over 260 manufacturing units nationwide, including 200 concrete plants, 16 tile factories in Morbi, and seven facilities dedicated to walling blocks. It has supplied materials to some of India’s largest infrastructure and industrial projects.

The company is also ramping up its business-to-consumer (B2C) and retail segments, which currently contribute 30% of total revenue. With over 10,000 retail touchpoints and 30 exclusive flagship stores, Infra.Market is targeting improved profitability in this segment, co-founder Sengupta had said in June.

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Infra.Market joins a growing list of startups preparing to tap public markets. Companies like Ather, Bluestone, and OfBusiness are expected to go public this year, following IPOs by FirstCry, Ola Electric, Swiggy, Unicommerce, and Blackbuck in 2024.