Infra.Market eyes funds to pare debt

Infra.Market, a business-tobusiness (B2B) construction material marketplace, plans to secure funding from new institutional investors by selling a stake in one of its subsidiaries, RDC Concrete, ahead of its initial public offering (IPO), three people in the know said.

The firm is in talks to raise over ₹500 crore, to incorporate fresh equity at the parent level, said one of the people. However, a second person said the company is looking to secure ₹1,000 crore by taking its subsidiary RDC Concrete public.

In 2021, it had divested 10% in RDC at a valuation of ₹1,500 crore. Backed by Tiger Global, Infra.Market seeks ₹200 crore for RDC, earmarking the funds for providing exits to its existing investors.

The startup, operated by Hella Infra Market Pvt. Ltd, is in discussions with 7–8 merchant bankers to formalize the listing process and is likely to file draft papers by June-July. The company is seeking a valuation ₹4,000 crore.

Last year, the firm was seeking to raise ₹1,200–1,300 crore to address its burgeoning debt, which now stands at ₹3,000 crore at the parent level.

For the Shalimar Paints deal it invested ₹200-300 crore, far exceeding its planned investment of ₹100 crore , all funded through debt, and intensifying pressure on its balance sheet.

Its rising debt is linked to a string of acquisitions since it became a unicorn in 2021. It acquired Strata Geosystem last year, and picked up stakes in construction equipment rental service Equiphunt in 2021 and in Shalimar Paints worth ₹270 crore in 2022.

An Infra.Market spokesperson was not immediately available for comment.

Established in 2016 by Sengupta and Aaditya Sharda, Infra.Market focuses on highvolume construction products for own brands besides offering solutions to its clients for improving quality, price transparency, and logistics infra.