Infra.Market, a construction materials solutions firm, is preparing to raise around $150-200 million (about Rs 1,250-1,650 crore) in a fresh round of funding, months before it prepares to list on the stock exchanges later in the year, people aware of the developments told Moneycontrol.
Existing backers such as Tiger Global, Foundamental and Evolvence will put in more money and increase their stake. Infra.Market is also negotiating with new investors looking for a seat on the company’s cap table ahead of the market debut, sources said.
Moneycontrol was the first to write about Infra.Market appointing bankers such as Kotak Mahindra Capital, Goldman Sachs and Jefferies for its initial public offering (IPO) through which it is looking to raise more than $500 million.
“Infra.Market is planning to raise around $150-200 million in its pre-IPO round. The valuation is still under discussion but will be higher than $2.5 billion commanded during its 2021 fundraise, on the back of improved financials,” one of the sources cited above said. “Once the round closes, the company will look to file its draft IPO papers in December.”
Other new-age companies such as jewellery maker BlueStone have also raised a pre-IPO round. Companies typically raise such rounds to strengthen their balance sheet and ready a cash chest that allows them to capitalise on future opportunities at a much faster pace.
“The entire round will be primary capital, there will be no secondaries component,” a second person aware of the developments said.
Infra.Market, Tiger Global, Foundamental and Evolvence did not answer Moneycontrol’s queries.
More on Infra.Market
Founded by Souvik Sengupta and Aaditya Sharda in 2016, Infra.Market offers ready-mix-concrete (RMC), aggregates, construction chemicals, steel, AAC (autoclaved aerated concrete) blocks, equipment solutions, pipes and fittings, MDF, plywood and laminates. Its private label categories include electrical products, tiles, sanitaryware, bath fittings, modular kitchens and wardrobes, and designer hardware.
The company has grown in size too. In FY23, Infra.Market clocked an operating revenue of Rs 11,846 crore, a 90 percent increase from Rs 6,236 crore in FY22. The top line grew even as profit took a hit. The company posted a profit of Rs 155 crore, a 17 percent drop from Rs 186 crore in FY22.
Infra.Market has raised over $550 million from investors such as Accel, Nexus Venture Partners and Tiger Global. It competes with SoftBank-backed OfBusiness, which is also preparing for a market debut.
Return of Tiger Global
For about 18 months, private equity (PE) giant Tiger Global remained on the sidelines and did not make any investments in India, the world’s third-largest startup ecosystem. The absence was more pronounced after its head Scott Shleifer stepped down in November 2023.
However, in the past few months it has made moves. Moneycontrol reported in March that the US-based investor was preparing to back Meesho, an ecommerce company in the country. It rivals Walmart-owned Flipkart, which was part of Tiger Global’s portfolio until August 2023, when it sold its stake to the US retailer and made bumper returns, Moneycontrol exclusively reported.
Return of large cheques
Once complete, Infra.Market will join a growing list of Indian startups which have closed $100 million rounds this year. As reported by Moneycontrol, companies such as Meesho, Mintifi, Eruditus and Rebel Foods have raised over $100 million each in fresh funding rounds. Some like Zepto bagged a whopping $1 billion across two rounds as investors continue to deploy capital and back Indian startups.
While capital is available, investors are now cherry picking companies and only investing in those that have shown potential to grow further.
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