Infra.Market nears closure of new round at over $4 Bn valuation

Construction goods and services platform Infra.Market turned unicorn in February this year and within six months its valuation built up to $2.5 billion when it cornered $100 million from Tiger Global and others in August. 

Now, somewhat like some of its clients who charge on a construction linked payments plan, Infra.Market seems ready to move to the next level with another investor round.

Infra.Market is in late-stage talks to raise a new round at a valuation of over $4 billion according to two sources aware of the details of the deal.

This will be the third round for Infra.Market in 2021. The Mumbai-based company had raised $225 million this year including a $100 million Series C round which made it the third Indian unicorn in 2021.

“Infra.Market is finalising a $200 million new round at a valuation of $4.2-4.5 billion from existing and new investors,” said one of the sources on the condition of anonymity. “The terms of the deal, which may have a secondary component, are being finalised and likely to get completed soon.”

Infra.Market leverages technology to provide an enhanced procurement experience for companies in the construction ecosystem. With a presence in around 10 states in India, the six-year-old company claims to receive 15% of its sales from overseas markets such as Dubai, Singapore and Jordan.

According to sources, new investors will join the round while existing backers such as Tiger Global will double down their stake in the Mumbai-based firm. The New York-based investor has been backing Infra.Market since December 2019. 

Entrackr couldn’t verify the name of the new investor participating in the round. Queries sent to Infra.Market and Tiger Global did not elicit an immediate response. We’ll update the post in case they respond.

Led by Aaditya Sharda and Souvik Sengupta, Infra.Market has already made a couple of acquisitions in 2021. In September, it ​​acquired 100% stake in RDC for about $100 million) whereas Hyderabad-based Equiphunt was acquired by the company in a $10 million deal.

Unlike most of the unicorn herd this year, Infra.Market is a profitable one with a sizable income. For the fiscal year ending on March 31, 2021, it generated revenues of Rs 1,243 crore as compared to Rs 351 crore in FY20. Despite Covid-led disruption in FY21, Infra.Market managed to grow its profits over four folds to around Rs 36 crore.

In the B2B e-commerce (industrial supply) business, Infra.Market competes with the likes of Zetwerk, OfBusiness and Moglix.

It’s worth mentioning that all the above mentioned B2B companies had entered the unicorn club in 2021 and a couple of them are in talks to raise a new round at a larger valuation. Tiger Global-backed OfBusiness, which picked up a $200 million round at a $3 billion valuation in September, is now in talks to raise a fresh round at over $4.5 billion. D1 Capital Partners-backed Zetwerk is also eyeing a $2.5 billion valuation in its upcoming round.