Infra.Market Secures Rs 731.5 Crore in Series G Funding

Infra.Market, a prominent platform for building materials, has successfully acquired Rs 731.5 crore (around $83 million) in a new Series G funding round. This investment is led by Silverline Homes, with additional backing from Tiger Global, NK Squared, Accel India, Nexus Ventures, and Evolvence India.

This funding comes just three months after Infra.Market raised $150 million in debt from Mars Growth Capital, a partnership between Liquidity Group and MUFG Bank. As per a resolution accessed by Startup Superb, Infra.Market’s board has approved the issuance of 34,276 Series G preference shares at a price of Rs 2,13,439 each to facilitate the fundraising.

Leading Investors in the Funding Round

Silverline Homes, linked with Infra.Market founders Aaditya Sharda and Souvik Sengupta, is spearheading this funding with an investment of Rs 250 crore. NK Squared, led by Nikhil Kamath, and Tiger Global are contributing Rs 200 crore and Rs 176 crore, respectively. Additionally, Accel India and Evolvence India each plan to invest Rs 44 crore, while Nexus Ventures will add Rs 17.6 crore to the round.

Company Valuation and Upcoming Plans

Estimates from Startup Superb indicate that this new funding round values Infra.Market at $2.8 billion, consistent with its previous Series F round. Sources reveal that the company is preparing to file a draft red herring prospectus (DRHP) next month, targeting an IPO size of $600-700 million.

Overview of Infra.Market’s Operations

Infra.Market operates a comprehensive platform that offers a range of structural products, including concrete, steel, and construction chemicals. It also provides finishing products such as AAC blocks, MDF, plywood, tiles, sanitaryware, paints, modular kitchens, and various consumer durables.

Performance and Market Landscape

Though the company has yet to disclose its FY25 figures, Infra.Market reported a notable 23% increase in consolidated revenue year-on-year, reaching Rs 14,530 crore in FY24. Its profit surged to Rs 378 crore, marking an impressive growth of 2.4X during the same fiscal year. The company faces competition from players like OfBusiness, Zetwerk, and Moglix in certain market segments. OfBusiness, based in Gurugram, posted revenues of Rs 19,296 crore, while Zetwerk and Moglix reported gross revenues of Rs 14,436 crore and Rs 4,964 crore, respectively, in FY24.

Many co-founders tend to boost their stakes in their firms before going public, often at lower or comparable valuations. For example, Peyush Bansal from Lenskart acquired a 2.5% stake prior to its IPO for a fraction of the company’s most recent private valuation. In a similar vein, Zetwerk’s leaders Amrit Acharya and Srinath Ramakkrushnan have infused Rs 600 crore to enhance their ownership levels, while Vidit Aatrey and Sanjeev Barnwal from Meesho expanded their stakes via ESOPs. It appears that Infra.Market’s founders, through Silverline Homes, are pursuing a comparable strategy.