Infra.Market Receives Additional $50 Million from MARS Growth Capital
As the construction materials platform gets ready for an IPO later this year, MARS Growth Capital has invested an extra $50 million in Infra.Market and extended the duration of its current $100 million funding by five years.
With this deal, MARS, a joint venture between MUFG Bank and private loan provider Liquidity, has invested roughly $150 million in the IPO-bound business, according to Infra.Market.
The $100 million first tranche, which began in 2022 and lasted for three years, was mostly utilized to produce paints and tiles.
Concrete and autoclaved aerated concrete blocks will be made with the extra money.
For the transaction, Northcote Luxe FinBrokers served as Infra.Market's sole advisor.
After obtaining over $125 million at a $2.7 billion valuation from investors such as Tiger Global, Evolvence, and Foundamental in January, the business is making its second fundraising attempt this year. Abhijit Pai, Nikhil Kamath, and Ashish Kacholia were among the investors who took part in the round.
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The company has selected Kotak Mahindra Capital, IIFL Capital, Goldman Sachs, Jefferies, ICICI Securities, HSBC Securities, Mortilal Oswal Financial Services, and Nuvama Wealth Management to oversee its initial public offering (IPO). The company is anticipated to submit draft IPO documents by September.
The company, which was founded in 2016 by Souvik Sengupta and Aaditya Sharda, provides solutions for every stage of the construction value chain. With significant investments in businesses including RDC Concrete, Shalimar Paints, Emcer, Millennium Tiles, and Amstrad, it has a network of more than 250 production facilities.
Concrete, walling solutions, steel, aggregates, pipes and fittings, plywood, laminates, tiles, paints, modular kitchens, designer hardware, appliances, electrical, and consumer durables are among the things it sells.
With more than 10,000 retail locations throughout India, Infra.Market serves both institutional and retail clients in the building materials industry.
Its goal is to upend the $255 billion building materials market, with an emphasis on the industrial, construction, and infrastructure sectors.
In February, the corporation announced plans to shift its focus from steel and concrete to lifestyle categories like home décor, mattresses, and curtains. Materials that go "outside the wall" in home construction, such as bath fixtures, ceramics, tiles, paints, home appliances, and consumer durables, are available under its lifestyle brand, Ivas.
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As businesses move their manufacturing to India due to inflationary pressures and geopolitical changes, the infrastructure market has grown faster. The Indian government's infrastructure drive and programs like the "China-plus-one" plan and the production-linked reward scheme have helped to maintain this momentum.
The company's profit after tax increased to Rs.378 crore from Rs.155 crore in FY23, while its reported revenue increased to Rs.14,530 crore in FY24 from Rs.11,846.5 crore the year before. Private labels in industries including concrete, walling materials, paint, electricals, and tiles were largely responsible for this expansion.