Exclusive: Infra.Market Acquires Majority Stake In Metro Group To Strengthen Its Tile Biz

IPO-bound building materials platform Infra.Market has picked up a majority stake in Metro Group, a ceramic tiles manufacturing company, in a share swap deal worth INR 200 Cr, the company’s filings with the Ministry of Corporate Affairs revealed. 

Sources close to the development told Inc42 that the unicorn, Infra.Market, intends to strengthen its foothold in the tiles industry with this move.

Queries sent to Infra.Market didn’t elicit any response until the publishing of this article. 

The fresh development comes almost a year after Infra.Market acquired a 57% stake in Emcer Tiles. Earlier this year, Infra.Market claimed that it became the second-largest player in India’s ceramics industry, with a manufacturing capacity that spans 19 units and three tile brands under its portfolio.

The Thane-based company (Hella Infra Market Ltd) has been relying on acquisitions to double down on its offerings. It acquired RDC Concrete for INR 730 Cr in 2021, followed by a stake acquisition in Shalimar Paints in 2022. 

Founded in 2016 by Souvik Sengupta and Aaditya Sharda, Infra.Market is a marketplace for construction materials. It also manufactures construction materials under its private label brands. It sells through its B2B, retail and B2C networks and leverages technology to digitise the procurement process.

Its product portfolio includes ready-mix concrete, tiles and paints under brands like RDC Concrete, Million Tiles and Shalimar Paints.

On the financial front, Infra.Market’s FY24 net profit jumped 144% to INR 378 Cr from INR 155 Cr in FY23. Revenue grew 23% YoY to INR 14,530 Cr in FY24. Over 80% of its overall revenue comes from its B2B offerings.

With a $500 Mn to $700 Mn IPO on the anvil, the company has been exploring various fundraising avenues, including a mix of equity and debt infusions. 

Despite having cash and cash equivalents of INR 275.1 Cr in FY24, the company has raised over $170 Mn so far this year. This year’s infusion includes $50 Mn in debt funding from Mars Growth Capital and $121 Mn from existing investors like Tiger Global, Foundamental, and Evolvence.

Last month, credit rating agency India Ratings flagged concerns around Infra.Market’s high dependence on debt refinancing, liquidity pressures, negative cash flow from operations in FY25, and stretched receivables at its Singapore subsidiary. As a result, it downgraded the company’s rating to BBB+ with a Negative Outlook.

In response, Infra.Market justified to investors that its improving financials, recent equity infusions, and upcoming liquidity events, including the IPO, had not been fully factored in by the rating agency.