Infra.Market nabs $50Mn from MARS Unicorn Fund
Indian construction materials supplier upstart Infra.Market, has secured $50 million in its latest fundraise from MARS Unicorn Fund, a joint venture between global asset manager Liquidity Group and Japanese financial giant Mitsubishi UFJ Financial Group (MUFG). This latest investment brings the total amount of funds pumped in by MARS Unicorn Fund in Infra.Market to $100 million (following an initial $50 million infusion in 2022).
This round, structured through Infra.Market’s Singapore unit and comprising both debt and equity, values the startup at approximately $2.5 billion, maintaining its valuation from August 2021. The company intends to leverage the fresh capital to propel its global expansion strategy and broaden its product portfolio. According to Souvik Sengupta, the company’s co-founder, the fresh funds will facilitate the launch of new verticals and help seed newer markets, thereby creating a world-class construction materials company originating from India. This expansion is crucial as Infra.Market continues to grow its product portfolio and market presence.
Infra.market, which targets the $140Bn construction materials market, also supplies high-volume construction products under its own brands. It caters to both institutional customers (B2B) and retail outlets (D2R). Its extensive product portfolio includes over 15 categories, such as concrete, steel, pipes, fittings, plywood, laminates, and electrical appliances, and its clientele spans 20 Indian states and several international markets, including Dubai, Singapore, Italy, and more.
By the end of fiscal year 2023, the company’s gross revenue surged to ₹11,846 crore, up from ₹1,240 crore in FY21, representing a nine-fold increase. However, its net profit declined by 17%, from ₹186 crore in FY22 to ₹155 crore in FY23. This decline in profitability is attributed to the substantial costs associated with rapid expansion and scaling operations. In the past year, it also divested a 10% stake worth $20 million in RDC Concrete, a company it had acquired for $90 million three years ago.
Today, the firm competes with the likes of established players like Zetwerk, OfBusiness, and Moglix. To date, the firm has raised around $500 million through a combination of equity and debt. It also counts the likes of prominent investment firms such as Tiger Global, Accel, and Nexus Ventures as its stakeholders. Before this latest funding round, Tiger Global held the largest external stake at 21.33%, followed by Accel at 16.87% and Nexus Ventures at 8.46%.
