Infra Market eyes fresh funding of up to $200 Mn before IPO

B2B ecommerce platform Infra.Market is reportedly looking to secure a fresh funding round of $150-200 million (around INR 1,250-1,680 crore) ahead of its initial public offering (IPO).

Existing investors, such as Tiger Global, Foundamental, and Evolvence, are expected to contribute most of the capital and may increase their stakes in the company. The company’s valuation, currently under discussion, is projected to exceed the $2.5 billion it was valued at during its 2021 fundraising, thanks to improved financial performance.

This funding round comes as Infra.Market, which is preparing for a $700 million IPO, has already enlisted eight investment banks, including Kotak Mahindra Capital, Goldman Sachs, Jefferies, and ICICI Securities, to lead the process. Sources indicate that the company plans to close the funding round before filing its draft IPO documents in December. All capital raised in the round will be primary, with no secondary component involved. The platform is also considering bringing new investors on board ahead of its IPO.

Founded in 2016 by Souvik Sengupta and Aaditya Sharda, Infra.Market produces construction materials under private-label brands and uses technology to streamline procurement. The company has raised approximately $500 million since its inception and, earlier this year, posted a 90% increase in operating revenue to INR 11,846.5 crore for FY23, up from INR 6,236.3 crore in the previous fiscal year. However, its net profit dropped 17% to INR 155.2 crore from INR 185.9 crore.

In recent developments, Infra.Market raised INR 185 crore (approximately $22 million) in July through non-convertible debentures from digital lending platform Yubi, agriculture finance company Samunnati, and Vivriti Capital. In addition to Infra.Market, several other startups, including Swiggy, Ecom Express, and Smartworks, are preparing for their IPOs in the coming months. Earlier in 2024, companies such as Go Digit General Insurance, FirstCry, Unicommerce, and Ola Electric listed on stock exchanges.

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