Infra.Market divests 10% in RDC Concrete at $225M valuation

Tiger Global-backed construction materials provider, Infra.Market, has divested nearly 10% share in RDC Concrete to a group of investors led by Ashish Kacholia, valuing the ready-mix concrete company at $225 million. 

Infra.Market acquired RDC Concrete for $90 million in 2021. It currently operates 100 plants across 48 cities, with plans to scale it up to 180 plants by the end of FY25, according to a company statement. 

Kacholia, the Co-founder of Hungama Digital, with Rakesh Jhunjhunwala and a proprietary investor in the equity markets, is known for his bets in small and midcap stocks in the Indian public market. 

“The strategic divestment in RDC Concrete serves as a crucial step in laying the groundwork for RDC’s imminent initial public offering (IPO),” said Souvik Sengupta, Co-founder at Infra.Market. 

He further added, “RDC team has built a lasting business, which has catapulted itself as a category leader. We feel an IPO will truly create the right value for all stakeholders at RDC, especially its employees who have been instrumental in building RDC. This valuation exercise is a first step in the direction towards unlocking that value through an IPO.”

Founded in 2016 by Sengupta and Aaditya Sharda, Infra.Market is valued at $2.36 billion, according to market data research platform Tracxn. The company offers a business-to-business app for its enterprise customers to order construction materials and offers solutions such as purchase, financing, inventory management, delivery, and others through its retailer app. 

The company last raised $50 million in growth capital led by Liquidity Group’s MARS Unicorn Fund in June 2022. The company also raised $150 million in convertible notes from Varde Partners in June 2023. 

The business-to-business platform has ventured into business-to-consumer through its private label play and plans on listing publicly in two years’ time, according to reports.