IPO-bound Infra Market raises additional $50 million financing from Mars Growth Capital
Construction materials marketplace Infra.Market has raised an additional $50 million in debt financing from Mars Growth Capital, as it looks to fund expansion plans before a public listing. The infusion takes the total amount raised from the lender to $150 million. The latest financing from Mars Growth Capital, a joint venture between MUFG Bank and private credit firm Liquidity Group, also includes a five-year extension of the terms on its existing $100 million borrowing.
The company said it will use the fresh capital to support its expansion plans and strengthen its presence across product categories and geographies. It currently offers over 15 product categories, including concrete, walling solutions, and steel, and operates a network of 250 manufacturing units. It has 10,000 retail touchpoints.
This is Infra.Market's second fundraise this year. In January, the company raised $125 million in a funding round to fuel expansion across India and global markets.
Founded in 2016 by Souvik Sengupta and Aditya Sharda, Accel-backed Infra.Market supplies construction and home improvement materials, including concrete, steel, pipes, plywood, fans, lights, and kitchen and electrical appliances to real estate developers, contractors and architects.
'We continue to build on our vision of creating India's largest building materials platform, offering end-to-end solutions across the construction value chain, not only in India, but also globally,' Sengupta said in a statement. 'We are seeing growth opportunities as we rapidly expand our market presence, and create a best-in-class construction materials company out of India.'
The funding comes at a time when the Mumbai-based company is preparing to file its draft red herring prospectus (DRHP) with the aim of raising Rs 2,500 crore through an initial public offering (IPO) this fiscal year. The company has already appointed merchant bankers and legal advisors and aims to go public in the third or fourth quarter of FY26, subject to regulatory approvals.
In May, rating agency India Ratings downgraded Infra.Market's rating to 'BBB+/negative outlook' from 'A-/negative outlook' over concerns around its debt refinancing, liquidity position and negative cash flow from operations in FY25. In FY25, Hella Infra Market, the parent company of Infra.Market, reported a 45% jump in earnings before interest, taxes, depreciation and amortisation (Ebitda) to Rs 1,596 crore, with margins improving to 8.7% from 7.5% a year ago. Profit after tax rose to Rs 492 crore from Rs 378 crore.Infra.Market claims to be the second-largest player by revenue in ready-mix concrete and among the top three in AAC blocks and tiles by capacity in India. It has also made strategic investments in brands such as RDC Concrete, Shalimar Paints, Emcer, Millennium Tiles, and Amstrad.The company is among a growing list of industrial commerce platforms preparing for a public market debut. Others include Zetwerk, Ofbusiness, and JSW One.Northcote Luxe FinBrokers advised Infra.Market on the latest transaction.'This $150 million potential commitment reflects our conviction in Infra.Market's vision and execution, as well as the transformative impact it is having across the construction value chain,' said Ron Daniel, cofounder and CEO of Liquidity Group. 'By combining Liquidity's technology-driven approach and underwriting capabilities with Infra.Market's scale and ambition, we are enabling sustainable growth and supporting Infra.Market's emergence as a global infrastructure leader.'
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