Exclusive: Tiger Global leads Series A round in B2B marketplace Infra.Market
Infra.Market, a B2B marketplace for real estate and construction materials, has raised $26 million in an equity and debt funding round. The Mumbai-based company raised $20 million in equity capital in the Series A round and the remainder as venture debt.
The equity portion was led by New York headquartered alternative investment firm Tiger Global Management, which continues on its B2B deal spree in its latest outing in India. Mumbai-based venture capital firm Nexus Venture Partners participated in the round along with returning investor Accel.
Temasek Holdings-backed venture debt firm Innoven Capital invested $6 million, Infra.Market co-founder Aaditya Sharda told TechCircle.
The latest infusion comes within six months of the company raising a $3.5 million funding round from Accel, according to media reports. It has also raised a $1 million angel round earlier, reports said.
“With the fresh capital, the company plans to launch operations in Hyderabad, Chennai and Ahmedabad. We will also use the funding to grow the monthly revenue to $20 million from the current $5 million,” Sharda said. It also intends to expand its product lines, he added.
Infra.Market, owned and operated by Hella Infra Market, was founded in 2016 by Sharda and Souvik Sengupta, alumnus of IIM Ahmedabad and IIM Bangalore respectively.
The company currently has operations in Mumbai, Bengaluru and Pune. It has built a centralised online market for real estate and construction materials. It operates an end-to-end service model and provides products such as ready-mix concrete, fly ash and construction chemicals.
InfraMarket counts companies such as ACC, Prism Johnson, JSW, IndiaCements, Dalmia, Nuvoco (earlier Lafarge) Wonder Cement , Capacite, Shapoorji, TataProjects, RDC Concrete, Sobha Developers, NCCCL, Godrej and Swastik Infra among its clients.
The construction sector in India is estimated to be a $150 billion industry contributing to 9% of India's GDP. The real estate and construction sector in India is expected to be the third-largest globally by 2030, contributing over 15% to Indian GDP, according to a report jointly released by NAREDCO and KPMG. The market size is expected to grow to $1 trillion in 2025, making it the third largest globally.
Infra.Market’s outsized Series A round underscores growing investor interest in India’s B2B startups. In October, Pune-based logistics platform ElasticRun raised $40 million in a Series C funding round led by Naspers-owned Prosus Ventures. In the same month, expense management platform Fyle raised $4.5 million in a funding round led by US-based hedge fund Steadview Capital. Bengaluru-based B2B ecommerce platform Udaan raised $585 million in a growth funding round in October.
Among investors, Tiger Global’s interest in B2B startups has been most noticeable. After backing a slew of consumer internet startups in its previous outing, which included Bengaluru-headquartered ecommerce major Flipkart, the firm is betting mega bucks on the emerging B2B opportunity here.
Read: In Numbers: Tiger Global bets on B2B in latest deal spree.
In October, it led a $7.5 million Series A round in SaaS startup UrbanPiper Technology. Last month, it joined Lightspeed to lead a $67 million Series B funding round in accounting application provider OkCredit. In July, it led a $60 million funding round in industrial goods marketplace Moglix.