Infra.Market Gears Up For IPO Of Subsidiary RDC Concrete By Divesting 10% Stake For $20 Mn

SUMMARY

The startup sold some part of its stake in RDC Concrete to public market investors, led by ace investor Ashish Kacholia

Infra.Market said the divestment of its stake in RDC Concrete paves the way for the latter’s initial public offering (IPO) in the near future

Infra.Market acquired ready-mix concrete (RMC) company RDC Concrete for $90 Mn in 2021

Construction marketplace Infra.Market, which counts Tiger Global, Nexus Venture Partners and Accel Partners among its marquee investors, has sold a 10% stake in RDC Concrete to public market investors, led by ace investor Ashish Kacholia for about $20 Mn.

Infra.Market’s divestment in RDC paves the way for its initial public offering (IPO) plan soon, the company said in a statement on Monday (December 4).

In 2021, Infra.Market acquired ready-mix concrete (RMC) company RDC Concrete for $90 Mn, with private equity firm True North, disinvesting its holding in the company.

The current fundraise valued the company at $225 Mn.

Infra.Market said when it had acquired RDC Concrete, it had 49 RMC plants and now these have grown to 100 across 48 cities. The startup now sees this number growing to 180 RMC plants by the end of FY25.

“Our interactions with the team at RDC has left us with a great understanding of the opportunities in India’s ready mix concrete market and the potential for the team at RDC to tap the opportunities,” said Kacholia.

There were reports that Infra.Market was planning for an IPO in the next two years. It was reportedly also in advanced-level talks to raise about $150 Mn from US-based Varde Partners earlier this year.

Founded in 2016 by Aaditya Sharda and Souvik Sengupta, Infra.Market works across building material product categories including cement, paint, chemicals, steel and tiles.

Equipped with over 10,000 retail touchpoints and more than 30 flagship stores, Infra.Market supplies its products under its own brand name as well as from companies like RDC Concrete and Shalimar Paints Ltd – the companies in which it has invested.

Infra.Market’s consolidated net profit surged 6X to INR 185.9 Cr, while revenue increased 404% to INR 6,285 Cr in FY22. The company claims that RDC Concrete’s revenue and its EBITDA have more than doubled since its acquisition in 2021.

RDC targets to clock a revenue of INR 2,000 Cr by the end of FY24.

“The investment in RDC reflects our commitment to driving growth and fostering leadership within the construction industry,” said Infra.Market cofounder Sengupta.