IPO-Bound Infra.Market Raises Additional $50 Mn Debt

SUMMARY

Mars Growth Capital has extended its existing $100 Mn facility by five years and increased the commitment by an additional $50 Mn

Northcote Luxe FinBrokers acted as the exclusive advisor to Infra.Market for this transaction

Previously, Infra.Market raised INR 100 Cr ($12 Mn) from non-banking financial company SK Finance Ltd, in January last year

Infra.Market has raised an additional $50 Mn (INR 427.41 Cr) in debt funding from Mars Growth Capital as it prepares for a public listing.

As part of this, Mars Growth Capital has extended its existing $100 Mn facility by five years and increased the commitment by an additional $50 Mn, bringing its total investment support to $150 Mn.

Northcote Luxe FinBrokers acted as the exclusive advisor to Infra.Market for this transaction.

In this light, India Ratings has downgraded Infra.Market from A-/negative outlook to BBB+/negative outlook, due to concerns around debt refinancing, liquidity pressures and negative cash flow from operations in FY25, an ET report said.

The latest funding comes after the company raised INR 1,050 Cr ($121 Mn) in January this year, at a valuation of about $2.8 Bn (INR 24,150 Cr).

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.

“We continue to build on our vision of creating India’s largest building materials platform, offering end-to-end solutions across the construction value chain, not only in India, but also globally. We are seeing growth opportunities as we are rapidly expanding our market presence, and create a best in class construction materials company out of India,” Sengupta said.

Since its inception, the construction solutions startup has raised a total funding of over $800 Mn from investors such as Tiger Global, Accel and Nexus Ventures.

In terms of debt investment, Infra.Market raised INR 100 Cr ($12 Mn) from non-banking financial company SK Finance Ltd, in January last year.

Almost a year ago, reports surfaced that Infra.Market was eyeing an IPO of $500-700 Mn and had roped in Kotak Mahindra Capital, IIFL Capital, Goldman Sachs, Jefferies, ICICI Securities, HSBC Securities, Motilal Oswal Financial Services, and Nuvama Wealth Management as the bankers for the public listing.

On the financial front, its net profit surged 144% to INR 378 Cr in FY24 from INR 155 Cr in the previous fiscal year. The company’s operating revenue zoomed 23% to INR 14,530 Cr in the year under review from INR 11,846.5 Cr in FY23.