Infra.Market secures additional $50 million debt from MARS Growth ahead of IPO

The debt will be used as capex for existing businesses such as concrete, AAC blocks and MDF, among others.

Infra.Market, the Accel-backed construction materials platform, has raised $150 million in debt financing from MARS Growth Capital, a joint venture between MUFG Bank and Liquidity Group, as it prepares for a public listing.

As part of this, MARS Growth has extended its existing $100 million facility by five years and increased the commitment by an additional $50 million, bringing its total financing support to $150 million.

This is the second round of funding for IPO-bound Infra.Market, which also raised $120 million earlier this year from existing investors such as Tiger Global, Foundamental and Evolvence, among others.

The debt will be used as capex for existing businesses such as concrete, AAC blocks and MDF, among others. It also has a presence in the paints category through its stake in Shalimar paints.

“Our revenues for FY25 have grown at over 20% CAGR, and our profitability has kept pace with that. We’ve been EBITDA positive and profitable for many years now, " said Souvik Sengupta, co-founder of Infra.Market, told Moneycontrol in an interaction.

“Right now, the focus is not just revenue growth but driving margins and unlocking profitability deeper within our existing categories," he added.

Founded in 2016 by Souvik Sengupta and Aaditya Sharda, Infra.Market operates across the construction value chain, supplying over 15 categories of building materials, including concrete, steel, walling solutions, tiles, paints, and electricals.

The company has a network of over 250 manufacturing units and 10,000 retail touchpoints across India.

Infra.Market serves both institutional clients (B2B) and retail outlets (B2R), and currently claims to be the second-largest player in India by revenue in the ready-mix concrete (RMC) segment, and the second-largest by capacity in both AAC blocks and flooring tiles.

The company is targeting the $255 billion building materials market in India, with a focus on infrastructure, industrial, and building construction segments.

MARS Growth Capital, which has $1.1 billion in assets under management, provides non-dilutive financing solutions ranging from $3 million to $100 million to mid-market, late-stage, and pre-IPO technology companies.

The company, which previously achieved unicorn status in 2021, has been actively scaling operations and making strategic acquisitions to diversify its portfolio across the construction and infrastructure ecosystem.

“We are doubling down on three categories, concrete, AAC blocks, and tiles, where we are already among the top players in India. The capital infusion will help us scale these up further," Sengupta said.

“In AAC blocks, we are the largest manufacturer in India. In concrete, we’re second only to Ultratech, and in tiles, we have the second-largest manufacturing capacity. These categories will remain our core growth engines," he added.

The firm is also serving public sector customers.

“Around 40% of our business is linked to government infrastructure projects, though we don’t sell directly to the government. We supply to EPC players like L&T and others executing metro, rail, and road contracts," Sengupta said.

Infra.Market raised Rs 1,050 crore (roughly $120 million) in fresh funding at a valuation of about Rs 24,147 crore (nearly $2.8 billion) valuation, as it prepares to list on the stock exchanges later this year.

In September last year, Moneycontrol exclusively reported that the company's existing backers such as Tiger Global, Foundamental and Evolvence were in talks to put in more money and increase their stake in the firm.