Mumbai-based construction solutions startup Infra.Market has successfully raised INR 100 crore ($12 million) in a debt funding round from non-banking financial company SK Finance Ltd. The startup’s board of directors approved the allotment of 1 Lakh unlisted, redeemable, non-convertible debentures to SK Finance, with plans to utilize the funds for working capital requirements and general corporate purposes.
SK Finance, an NBFC with a focus on automobile loans, including commercial vehicles, and business loans, provided the debt funding to Infra.Market, marking a strategic move for both entities.
This development follows a recent move by Infra.Market, where it sold a 10% stake in its subsidiary RDC Concrete to public market investors, including Ashish Kacholia, for about $20 million. The subsidiary was acquired by Infra.Market in 2021 for approximately $19 million.
While there were earlier reports in June 2022 about Infra.Market’s intention to raise $150 million from US-based Varde Partners, no official fundraise announcement was made thereafter. Instead, the company made headlines by acquiring a majority stake in Strata Geosystems for INR 910 crore ($109 million) from US-based Glen Raven Technical Fabrics in June 2023.
Founded in 2016 by Aaditya Sharda and Souvik Sengupta, Infra.Market is involved in manufacturing construction materials under its private-label brands. The company operates through a diverse network, including B2B, retail, and B2C channels, leveraging technology to digitize the procurement process.
Infra.Market’s portfolio also extends to owning a stake in Shalimar Paint, and in 2021, it acquired Equiphunt, a Hyderabad-based construction rental company, for around $10 million.
The startup’s financial performance for FY22 revealed impressive figures, with a consolidated net profit surging 6X year-on-year to INR 185.9 crore, and revenue experiencing a remarkable 404% YoY increase to INR 6,285 crore. The financial statement for FY23 is yet to be filed with the Ministry of Corporate Affairs.
With a last valuation at $2.5 billion, Infra.Market competes indirectly with industry players like Zetwerk and Moglix. The startup has amassed over $600 million in funding to date, with notable backers such as Tiger Global, Nexus Venture Partners, and Mars Growth Capital.
