Exclusive: Infra.Market Raises $12 Mn Debt From SK Finance

Construction solutions startup Infra.Market has raised INR 100 Cr ($12 Mn) in a debt round from non-banking financial company SK Finance Ltd.

The startup’s board of directors passed a resolution last week to raise INR 100 Cr by allotting 1 Lakh unlisted, redeemable, non-convertible debentures to SK Finance. 

As per its website, SK Finance is an NBFC focussed on automobile loans, including commercial vehicles, and business loans.

Infra.Market will utilise the fresh capital for its working capital requirements and general corporate purposes. 

The development comes a month after the startup sold a 10% stake in its subsidiary RDC Concrete, which it acquired in 2021 for about $19 Mn, to public market investors, including Ashish Kacholia, for about $20 Mn.

In June last year, it was reported that Infra.Market was looking to raise $150 Mn from US-based Varde Partners.  

While the startup didn’t announce any fundraise after that, it went on to acquire a majority stake in Strata Geosystems for INR 910 Cr ($109 Mn) from the US-based Glen Raven Technical Fabrics in June 2023. 

Founded in 2016 by Aaditya Sharda and Souvik Sengupta, Infra.Market manufactures construction materials under its private-label brands. It has a B2B, retail and B2C network and leverages technology to digitise the procurement process. 

The startup also owns a stake in Shalimar Paint. In 2021, it also acquired Equiphunt, a Hyderabad based construction rental company, for around $10 Mn. 

Infra.Market’s consolidated net profit surged 6X year-on-year (YoY) to INR 185.9 Cr in FY22, while revenue increased 404% YoY to INR 6,285 Cr. The startup is yet to file its financial statement for FY23 with the Ministry of Corporate Affairs. 

Last valued at $2.5 Bn, Infra.Market indirectly competes against the likes of Zetwerk and Moglix. It has raised over $600 Mn till date and counts the likes of Tiger Global, Nexus Venture Partners, and Mars Growth Capital among its backers.