Infra.Market Valued At $2.5 Bn After $125 Mn Series D Round Led By Tiger Global

Construction-focused marketplace Infra.Market has raised $125 Mn in a Series D round led by Tiger Global. The latest funding round values the company at $2.5 Bn, a significant jump compared to the $1 Bn valuation it reached after its Series C fundraise in February 2021. 

The new fundraise will enable Infra.Market to enhance its technological offerings for the construction and real estate sector, expand into newer markets and advance initiatives such as private label brands, retail channel sales and exports.

Founded in 2016 by Aaditya Sharda and Souvik Sengupta, Infra.Market is a B2B online procurement marketplace for real estate and construction material that leverages technology to offer fair pricing and a smoother procurement experience for its customers. The platform aggregates demand and matches it with the supply chain, with wholesale pricing on materials, along with affordable credit or financing, which is not always available for small businesses in this sector.

The company caters to both institutional customers (B2B) and retail outlets in the construction materials sector. Over the last 12 months, Infra.Market claims to have grown its supply to retail outlets steadily and follows a dual model of flagship stores catering to smaller stores and dealership stores for retail customers. The startup currently supplies construction materials to buyers across 10 states in India and exports to markets such as Dubai, Singapore, Jordan, Italy among other countries. 

The company has been profitable since its inception in 2016. In the financial year 2020, the company had noted a 5.5x jump in its revenue to INR 350 Cr. Its expenses grew at the same rate to reach INR 339 Cr, leading to a profit of INR 8.59 Cr. The B2B marketplace had reported a revenue of INR 63 Cr with expenses worth INR 60.75 Cr, leading to a profit of INR 1.74 Cr.

To date, Infra.Market has raised around $299 Mn in funding led by prominent investors including Accel, Nexus Venture Partners, Evolvence India Fund, Sistema Asia Fund and Foundamental Gmbh, and others. The startup also recently secured two tranches of venture debt funding from Alteria Capital and InnoVen Capital. 

“We are embarking on new business verticals within the construction ecosystem beyond materials to enable us to provide end to end solutions to our customers across the lifecycle of a construction project. We are seeing huge growth in buyer wallet share as we are rapidly expanding our product portfolio and market presence and the launch of new verticals will help us fulfill our vision of creating a technology backed end to end construction solutions company,” founder and CEO Sengupta said in a statement.

Besides Infra.Market, marketplaces such as Zetwerk, Moglix, IndiaMART, Udaan and others also cater to the construction sector in India, even though a majority of them have a wider focus on B2B procurement and manufacturing needs beyond real estate and construction.