Infra.Market Raises $121 Million, Valued at $2.8 Billion Ahead of IPO

Infra.Market, an Indian construction materials supplier, has raised $121 million in a funding round led by its existing investor, Tiger Global. The round, which also saw participation from Evolvence, Foundamental GmbH, and Zerodha co-founder Nikhil Kamath, values the company at approximately $2.8 billion, according to regulatory filings.

The technology-driven building materials platform secured this funding ahead of its planned initial public offering (IPO) later this year. With the latest infusion of capital, equivalent to ₹1,050 crore, the company’s valuation now stands at ₹24,147 crore. 

Infra.Market, a key supplier of building materials like cement, tiles, and paints for large-scale infrastructure projects, has selected eight investment banks to oversee its forthcoming initial public offering (IPO). The appointed banks are Nuvama Wealth Management, Motilal Oswal Financial Services, HSBC Securities, ICICI Securities, Jefferies, Goldman Sachs, IIFL Capital, and Kotak Mahindra Capital. The company is preparing to submit its draft papers to the Securities and Exchange Board of India (SEBI) in the near future.

In the financial year ending March 2024, Infra.Market reported revenue of ₹14,530 crore ($1.68 billion) and profit of ₹378 crore. This is a major growth from the previous year, when the company’s revenue stood at ₹11,846 crore and its net profit was ₹155 crore. The firm’s continued expansion is supported by a strong supply chain spanning over 250 manufacturing plants and warehouses, coupled with a comprehensive distribution network.

Established in 2016, Infra.Market has quickly become a prominent technology-driven platform for building materials in India. The company leverages technology to streamline operations across demand planning, procurement, manufacturing, warehousing, and logistics. Notable clients include major infrastructure projects such as Kempegowda Airport, the Mumbai Metro, the bullet train project, and Apple’s Foxconn factory.

In recent years, Infra.Market has expanded its product portfolio and operations by acquiring companies such as construction equipment rental firm Equiphunt and independent ready-mix concrete player RDC Concrete. With more than 15 categories of products ranging from concrete and steel to modular kitchens and electricals, Infra.Market is positioning itself as a comprehensive solution provider to India’s growing infrastructure needs.

In May 2023, Infra.Market made a strategic move by selling a minority stake in its subsidiary, RDC Concrete, to a group of investors including Nikhil Kamath, Capri Global Family Office, Sumeet Kanwar of Verity, and Abhijeet Pai’s Wear Steels. This followed a previous sale of a 10% stake in RDC Concrete to investors led by Ashish Kacholia in November 2023.

Infra.Market claimed the title of India’s largest manufacturer of Autoclaved Aerated Concrete (AAC) blocks in September 2023. The company’s AAC block production capacity now stands at 3 million cubic meters annually, distributed across nine plants. The company has also expanded its retail presence, reaching over 10,000 touchpoints and operating over 30 exclusive flagship stores across India, offering a wide range of construction materials and products, including tiles, paints, concrete, and modular furniture.