Infra.Market Secures Debt Financing, Bolstering Growth in Construction Materials Market

Infra.Market, a main provider of development materials, foundation products, and specialized hardware, has gotten an obligation mixture of Rs 150 crore (roughly $18 million) throughout recent months. This obligation supporting follows a new $50 million value round from the Mars Unicorn Asset, a joint endeavor between Liquidity Gathering and MUFG.

Strategic Debt Issuance

The company’s board approved a special resolution to issue non-convertible redeemable debentures to raise the Rs 150 crore. This represents the first tranche of a previously approved plan to raise up to Rs 500 crore through debentures.

Investor Participation

Several prominent investors participated in the debt financing round. Yubi, a digital lending platform, contributed Rs 80 crore. Raymond Limited, IKF Home Finance, and Samunnati Financial (through their NBFC treasuries) also participated, investing Rs 25 crore each, and Rs 20 crore respectively.

Market Focus and Growth Trajectory

Founded in 2016 by Souvik Sengupta and Aaditya Sharda, Infra.Market has capitalized on the burgeoning construction materials market, particularly within the infrastructure sector. The company caters to both institutional (B2B) and retail (D2R) segments, offering a wide range of construction materials across 16 Indian states. Their reach extends beyond domestic borders, with exports to markets like Dubai, Singapore, Jordan, and Italy.

Financial Performance and Competitive Landscape

With this latest debt infusion, Infra.Market has secured a total of approximately $520 million in both equity and debt financing. Tiger Global remains the largest external stakeholder, holding a 21.33% stake (as per data platform TheKredible before this round). Accel and Nexus Ventures follow with holdings of 16.87% and 8.46%, respectively.

While Infra.Market’s FY24 financials are yet to be filed, the company reported a robust 89% increase in gross revenue to Rs 11,846 crore in FY23. However, their profit during the same period dipped by 17% to Rs 155 crore.

Infra.Market faces competition from established players like OfBusiness, which reported nearly Rs 20,000 crore in revenue and Rs 603 crore in profit for FY24 (as reported exclusively by Entrackr on July 8). Zetwerk and Moglix’s FY24 financial results are yet to be disclosed.

This debt financing positions Infra.Market for continued growth and expansion within the construction materials sector. The company’s strategic approach to fundraising and its focus on a thriving market segment position it well to compete in the coming years.