Infra.market, a tech-enabled building materials platform, looks to tie up with mine owners and procure materials from them.
The company sources aggregates (stone chips) which is one of largest raw material of concrete. “This is a part of backward integration to source raw materials,” said Aditya Sharda, co-founder of the company. The company has over 230 plants in concrete, of which half are owned by it .It plans to own equal number of owned plants and leased plants in the future.
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Similarly, it is open to own factories or tie up with factory owners for its foray into home furnishing. The company is looking to become a stop shop for all building needs and creating a house of brands such as Avas in home appliances, Shalimar Paints and so on.
Founded in 2016 by Souvik Sengupta and Aditya Sharda, Infra.Market supplies building materials, including concrete, steel, and paints electrical appliances, to real estate developers, infrastructure and industrial projects.
The company earlier said it will raise $ 500 milion (Rs 4300 crore ) through intiial public issue which will help it give exit to its investors. Though Sharda declined to comment on IPO, sources said the company is likely to file draft papers for IPO in a couple of months .
The company raised Rs 1,050 crore in its pre-IPo arlier this year from investors such as Tiger Global, Nikhil Kamath and others as it With this funding round, the company’s estimated valuation reached Rs 24,147 crore.
The company is looking to do business of Rs 18000 crore with a growth of 20% in FY25, sources said.
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Sharda said the company aspires to increase the B2C business share from 25% to 35% . Currently B2B has a share of 75%. “If you create a strong B2C brand , demand comes for B2B business,” he said
At the product level, the gross margin from private label brands is 16-18%, whereas the margin from distribution brands is 6-7%. At the business level, the gross margin for B2B is around 8-10%, while B2C offers margins of 18-22%, he said.
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