[Funding alert] Infra.Market raises $20M in Series B round from Evolvence, Sistema Asia Fund, Foundamental
, a Mumbai-based technology firm providing a one-stop marketplace for construction materials, logistics and financing support, has raised a Series B funding of $20 million from Evolvence India Fund, Sistema Asia Fund, and Foundamental. Existing investors including Accel, Tiger Global, and Nexus Venture Partners also participated in the round.
The new funds will enable the company to seed newer markets and advance its integration initiatives such as private labels and direct-to-retail channels.
“Infra.Market is disrupting the largely fragmented construction industry procurement in India which is at the cusp of an inflection, given the policy-driven focus on the sector,” said Sumit Jain, Senior Partner, Sistema Asia Fund.
Founded by Souvik Sengupta and Aaditya Sharda in 2016, Infra.Market is an online procurement marketplace that leverages technology to provide an enhanced procurement experience for all players in the construction ecosystem. The company focuses on high-volume construction products under its own brands and aims to solve existing issues such as the lack of price transparency, unreliable quality, a fragmented vendor base, and inefficient logistics.
“As an enabler to this sector, Infra.Market has emerged as one of the most disruptive companies through pioneering technological innovation in the procurement and distribution of building materials catering to the infrastructure and construction industry by improving logistics, financing, procurement and project management of large scale projects in key markets across India,” added Rohit Batra, Partner, Evolvence India.
This financial year, Infra.Market claims to have reported revenue growth of 5.5 times year-on-year, expanded to Tier-II cities in India and has exceeded pre-COVID-19 revenue levels while maintaining healthy economics and bottom-line profitability.
Currently, the firm is achieving $180 million annualised GMV and intends to grow this upto $300 million by March 2021. The startup has been net profitable since its inception four years ago.
"At Infra.Market, Souvik and Aaditya have built not just the market leader in the space of procurement for construction, but created an entirely new playbook for manufacturing and distribution of materials, a $200+ billion market with significant tailwinds,” stated Shubhankar, Partner, Foundamental.
Infra.Market is working across 10 states in India and is looking to expand further into Tier-II cities within these states. It caters to both institutional customers (B2B) and retail outlets (D2R) in the construction material sector. Almost 10 percent of the revenues of the startup are currently generated from its international operations. It currently exports to countries such as Dubai, Singapore, Malaysia etc, and will use a portion of the current funds to enhance its international operations.