Mumbai: MARS Growth Capital has infused an additional $50 million in Infra.Market and extended the term of its existing financing of $100 million by five years as the building materials platform prepares for an initial public offering later this year.
MARS, a joint venture between private credit firm Liquidity and MUFG Bank, has invested about $150 million in the IPO-bound company with this transaction, Infra.Market said in a statement on Monday.
The first tranche of $100 million, which had a three-year tenure starting in 2022, was predominantly used towards making paints and tiles. The additional proceeds will be used to manufacture concrete and autoclaved aerated concrete blocks.
Northcote Luxe FinBrokers was the exclusive advisor to Infra.Market for the transaction.
This is the company’s second fundraising effort this year after it secured about $125 million at a $2.7 billion valuation from investors including Tiger Global, Evolvence, and Foundamental in January. Investors Ashish Kacholia, Nikhil Kamath, and Abhijit Pai also participated in the round.
Mint reported in April that Infra.Market’s venture debt backers – Innoven Capital, Strides Ventures and Trifecta Capital – are exploring a $30 million secondary transaction in an extended pre-IPO round as they look to encash some of their stake.
The company is expected to file draft IPO papers by September and has appointed Kotak Mahindra Capital, IIFL Capital, Goldman Sachs, Jefferies, ICICI Securities, HSBC Securities,Motilal Oswal Financial Services, and Nuvama Wealth Management, to manage its IPO.
Founded by Souvik Sengupta and Aaditya Sharda in 2016, the company offers solutions across the construction value chain. It has a network of over 250 manufacturing units with strategic investments in companies including RDC Concrete, Shalimar Paints, Emcer, Millennium Tiles, and Amstrad.
Beyond concrete
It sells a range of products including concrete, walling solutions, steel, aggregates, pipes & fittings, plywood, laminates, tiles, paints, modular kitchens, designer hardware, electricals, appliances and consumer durables.
With over 10,000 retail outlets across India, Infra.Market caters to institutional customers as well as retail outlets in the building materials sector and aims to disrupt the $255 billion building materials market with a focus on the infrastructure, industrial and construction sector.
The company highlighted plans in February to move beyond concrete and steel and focus on lifestyle categories such as mattresses, curtains, and home décor. Its lifestyle brand, Ivas, offers materials that go “outside the wall” in home construction like bath fittings, ceramics, tiles, paints, home appliances and consumer durables.
Infra.Market’s growth has accelerated as geopolitical shifts and inflationary pressures prompt companies to relocate manufacturing to India. This momentum has been bolstered by the Indian government’s infrastructure push and initiatives like the production-linked incentive scheme and the “China-plus one” strategy.
The company reported revenue of ₹14,530 crore in FY24, up from ₹11,846.5 crore the previous year, while its profit after tax surged to ₹378 crore from ₹155 crore in FY23. Much of this growth came from private labels in categories like concrete, walling products, paint, electricals and tiles.
