Infra.Market to raise Rs 731 Cr led by promoters at flat valuation

Building materials platform Infra.Market is raising Rs 731.5 crore (approximately $83 million) in a fresh round of Series G funding, led by Silverline Homes, with participation from Tiger Global, NK Squared, Accel India, Nexus Ventures, and Evolvence India.

The funding comes barely three months after Infra.Market secured $150 million in debt from Mars Growth Capital, a joint venture between Liquidity Group and MUFG Bank.

According to the copy of the resolution seen by Entrackr, the board of Infra.Market has passed a resolution to issue 34,276 Series G preference shares at an issue price of Rs 2,13,439 each, to raise the above sum.

Silverline Homes, an entity of Infra.Market founders Aaditya Sharda and Souvik Sengupta, will lead the round with Rs 250 crore. Nikhil Kamath’s NK Squared and Tiger Global will contribute Rs 200 crore and Rs 176 crore, respectively, while Accel India and Evolvence India will put in Rs 44 crore each. Nexus Ventures will invest Rs 17.6 crore.

Entrackr’s estimates show that the new money came at a flat valuation of $2.8 billion, the same as its previous Series F round. As per the sources, the company will file DRHP (draft red herring prospectus) by next month, with the IPO size ranging between $600-700 million.

Infra.Market operates a full-stack platform offering structural products such as concrete, steel, and construction chemicals; finishing products like AAC blocks, MDF, plywood, and pipes, spanning tiles, sanitaryware, paints, fans, modular kitchens, and consumer durables.

While the firm is yet to report its FY25 numbers, Infra.Market’s consolidated revenue surged 23% year-on-year to Rs 14,530 crore in FY24. Its profit grew 2.4X to Rs 378 crore during the same fiscal year. The company competes with OfBusiness, Zetwerk, and Moglix in certain categories. Gurugram-based OfBusiness posted revenues of Rs 19,296 crore, while Zetwerk and Moglix reported gross revenues of Rs 14,436 crore and Rs 4,964 crore, respectively, in FY24.

Many co-founders have increased their holdings in their companies before going public, often at much lower or similar valuations. Lenskart’s Peyush Bansal, for instance, bought back a 2.5% stake ahead of its IPO at one-tenth of the company’s last private valuation. Zetwerk’s Amrit Acharya and Srinath Ramakkrushnan infused Rs 600 crore to lift their ownership, while Meesho’s Vidit Aatrey and Sanjeev Barnwal expanded stakes through ESOPs. Infra.Market’s founders, through Silverline Homes, appear to be taking the same route.