Infra.Market secures $50 million in debt for West Asia expansion

Souvik Sengupta, Infra.Market founder

Infra.Market, a platform that sells construction material, has raised $50 million in a structured debt round from Mars Growth Capital to fuel its expansion in the West Asian market, with the United Arab Emirates (UAE) as base.

This is the second financing by Mars in Infra.Market, which takes its total investment to $100 million. The fund had previously invested $50 million in Infra.Market in 2022.

The fresh infusion will be done in the company’s Singapore entity which serves as the headquarters for its international business.

Infra.Market was last valued at $2.5 billion in its Series D funding round which was led by Tiger Global in 2021.

In FY24, the company recorded revenues of $1.75 billion (around Rs 14,600 crore), EBITDA (earnings before interest, taxes, depreciation, and amortisation) of $150 million (around Rs 1,250 crore) and a profit after tax of $50 million (around Rs 416 crore), according to founder Souvik Sengupta.

This means revenue grew 23 percent from Rs 11,846 crore in FY23 and profit rose 168 percent from Rs 155 crore.

Sengupta told Moneycontrol that an increase in the penetration of the company’s private label brands, its move to start manufacturing some construction materials like concrete, paint and wood panels, and the overall growth of the construction sector have helped the company improve its financials.

Infra.Market caters to both institutional customers (B2B) and retail outlets (D2R) in the construction materials sector. Over the last 12 months, it has grown supply to retail outlets steadily and follows a dual model of flagship stores (for catering to smaller stores) and dealership stores (for retail customers). It supplies across 20 states in India and exports to multiple global markets such as Dubai, Singapore, Italy, and more.

The announcement comes on the heels of the ongoing increase in allocation for infrastructure projects under the National Infrastructure Pipeline, which has planned projects worth $2 trillion to be deployed over the next few years. Infra.Market intends to use the proceeds of the latest raise to cater to newer global markets and increase its presence across product verticals.

Sengupta said, “We continue to build on our vision of creating India’s largest multi-product construction materials brand and transforming the construction materials supply chain, not only in India, but also globally. We are seeing growth opportunities as we are rapidly expanding our product portfolio and market presence, and the launch of new verticals will help us seed newer markets and create a best in class construction materials company out of India.”