Infra.Market’s FY23 Sales Cross INR 11,000 Cr Mark But Profit Slips

Mumbai-based construction solutions provider Infra.Market’s sales crossed the INR 11,000 Cr mark in the financial year ended March 31, 2023. The unicorn reported an operating revenue of INR 11,846.5 Cr in the financial year 2022-23 (FY23), an increase of 90% from INR 6,236.3 Cr in the previous fiscal year. 

The startup primarily earns revenue by selling construction materials, including cement, paint, chemicals, and tools. Including other income, total revenue jumped 89% to INR 11,890.8 Cr from INR 6,285 Cr in the previous fiscal year. 

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. 

Despite the increase in operating revenue, the startup’s net profit declined 17% to INR 155.2 Cr from INR 185.9 Cr in the previous fiscal year as its depreciation and amortisation expenses rose over 5X to INR 178.7 Cr.

Where Did Infra.Market Spend?

Total expenditure increased 92% to INR 11,607.6 Cr in FY23 from INR 6,058 Cr in the previous fiscal year. 

Procurement Cost: At INR 9,973.4 Cr, procurement of finished goods and raw materials was the biggest expenditure for Infra.Market and accounted for 86% of its total expenditure. This was a rise of 82% from INR 5,478 Cr in the previous fiscal year.

Employee Benefit Expenses: The startup spent INR 278.8 Cr on employee costs during the year under review, an increase of 99% from INR 140.4 Cr in the last fiscal year. The sharp increase in employee benefit expenditure indicates that the startup’s employee count might have increased during the year under review. 

Transportation Cost: In FY23, the startup spent INR 216.3 Cr on transportation, a jump of 263% from INR 59.6 Cr in the previous fiscal year. 

The startup’s EBITDA margin expanded to 6.6% in FY23 from 6.3% in the previous fiscal year. 

Infra.Market’s cash and cash equivalents stood at INR 251.1 Cr at the end of FY23, an increase of 138.5% from the previous year’s INR 105.2 Cr. 

In the last couple of years, the startup has announced major acquisitions to expand its product portfolio. Last year, it acquired a majority stake in Strata Geosystems for INR 910 Cr ($109 Mn) from the US-based Glen Raven Technical Fabrics. 

In 2021, it acquired a majority stake in Shalimar Paint. In 2021, it also acquired Equiphunt, a Hyderabad-based construction rental company, for around $10 Mn. In the same year, it also acquired RDC Concrete for around $100 Mn.

However, last year, Infra.Market sold a 10% stake in its subsidiary RDC Concrete to public market investors, including Ashish Kacholia, for about $20 Mn.

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.