Mumbai-based infrastructure technology company Infra.Market on Monday (December 2) announced that it has raised $20 Mn in Series A funding round. The investment has been led by US-based investment firm Tiger Global with participation from Nexus Venture Partners.
Existing investor Accel Partners also invested in the round as well as Dhruv Agarwala, founder and chief executive officer of Proptiger. With this funding, the total amount raised by Infra.Market is $24.5 Mn.
The startup plans to use the funds for expansion in cities such as Hyderabad, Ahmedabad, and Chennai and also aims to grow its revenue from the existing $5 Mn per month to $20 Mn.
Founded in 2016 by Aaditya Sharda and Souvik Sengupta, Infra.Market is a B2B online procurement marketplace for real estate and construction materials, with technology as their focal point.
Infra.Market has built a centralised online market for real estate and construction materials that offers fair pricing and enhanced technology experience to help customers get the best pricing for their needs. It does this by aggregating customer demands, matching them with the supply chain, and offering economies of scale on material pricing, along with affordable credit options that were earlier not available to B2B customers.
Souvik Sengupta, cofounder, Infra.Market said, “This round happened before we expected, we are not looking to raise more funds. Currently, we are a high margin company and we have to stick to that.”
By March 2020, Infra.Market expects to be operational in at least five cities. Some of its clients include ACC, Prism Johnson, JSW, IndiaCements, Dalmia, Nuvoco, Wonder Cement (earlier Lafarge), Capacite, Shapoorji, TataProjects, RDC Concrete, Sobha Developers, NCCCL, Godrej, and Swastik Infra.
As a technology platform, Infra.Market creates a direct communication chain between its clients and supply chain, ensuring an efficient delivery tracking facility. The startup dishes out a unique and personalised experience for customers, with a dedicated relationship manager to help understand and fulfil their specific requirements.
The company is competing with players such as Moglix, IndustryBuying, OfBusiness, and Power2SME. The industry has a positive outlook with experts forecasting that India is going to be the third-largest construction market globally by 2025. In fact, the construction sector has been the second-highest recipient of FDI in 2017.