PharmEasy CEO-Backed ArisInfra Files Draft Papers For INR 600 Cr IPO

Technology-driven construction material procurement platform ArisInfra Solutions has filed its draft red herring prospectus (DRHP) with the markets regulator Securities and Exchange Board of India (SEBI) to raise INR 600 Cr via an initial public offering (IPO). 

The IPO will consist solely of freshly issued shares as no existing investor is selling shares.

ArisInfra counts a host of wealthy individuals and family offices, including PharmEasy chief executive Siddharth Shah, San Francisco-based Think Investments, and partners from private equity firms such as TPG Capital and BlackRock among its backers.

The company plans to use the IPO proceeds to repay outstanding borrowings, support working capital, and invest in its subsidiary, Buildmex-Infra Pvt Ltd. The funds will also be used to buy partial shareholdings from existing shareholders of ArisUnitern Re Solutions and for general corporate purposes and potential acquisitions.

Founded in February 2021 by Ronak Morbia and Bhavik Khara, ArisInfra uses AI and machine learning to simplify construction material procurement. The platform links property developers with vendors, digitising the construction industry’s supply chain.

It is a new age material procurement and smart financing platform for infrastructure and construction companies.

According to the report, the company has raised INR 160 Cr in equity and an equivalent amount in debt. Its latest funding round in January 2022 valued the company at approximately $100 Mn.

Its clients include Tata Group, JSW, UltraTech Cement, ACC, Dalmia, Godrej, Larsen & Toubro, Apco Infra, SP Singla Constructions, and Lafarge.

For fiscal 2024, the company reported revenue of INR 700 Cr and EBITDA of INR 40 Cr. It has remained profitable since its inception.

JM Financial, IIFL Securities, and Nuvama Wealth Management are the lead managers for the proposed issue.

This move coincides with increased investor interest in proptech startups, which are seen as key players in digitally transforming the real estate market.

For instance, a few days back, Mumbai-based Truva raised $3 Mn in a seed funding round led by Stellaris Venture Capital, along with participation from Peercheque and a host of angel investors.

In July, Private equity firm HDFC Capital picked up 8.5% stake in Mumbai-based proptech startup TruBoard for an undisclosed amount.