Infra.Market Secures $100 Million, Achieving Unicorn Status

A recently established startup in India has attained unicorn status by providing crucial procurement and logistical support to construction and real estate firms within the nation, which is the world’s second most populous.

Series C Funding and Valuation

Infra.Market, founded four years ago, announced on Thursday the successful completion of a $100 million Series C funding round. This round was spearheaded by Tiger Global, with participation from existing investors including Foundamental, Accel Partners, Nexus Venture Partners, Evolvence India Fund, and Sistema Asia Fund.

The investment has resulted in a valuation of $1 billion for the Indian startup. This latest funding brings the total capital raised by Infra.Market to approximately $150 million.

Rapid Growth and Previous Funding

This new round follows closely on the heels of the Mumbai-based startup’s Series B round, which concluded just two months prior. A source familiar with the matter revealed to TechCrunch that the company was valued at around $200 million post-money during the December funding round.

Supporting Small Manufacturers

Infra.Market focuses on assisting small-scale businesses, such as manufacturers of paints and cement, in enhancing their production quality and adhering to regulatory requirements. The company integrates load cells into these manufacturers’ facilities to guarantee consistent quality control.

Furthermore, Infra.Market facilitates access to superior raw materials and provides pricing guidance, while also ensuring timely deliveries. This comprehensive support system is designed to optimize their operations.

Expanding Market Reach

According to co-founder Souvik Sengupta, these improvements empower smaller manufacturers to secure contracts with larger clients who demand higher standards. The startup has also enabled these manufacturers to extend their reach to international markets, including Bangladesh, Malaysia, Singapore, and Dubai.

A Service-Oriented Approach

“We are providing a service layer to these small manufacturers, facilitating their business expansion. We do not own the assets and instead concentrate on developing private label brands,” Sengupta explained in a December interview with TechCrunch.

Infra.Market collaborates with over 170 small manufacturers and serves a substantial client base, including major construction and real estate companies like Larsen & Toubro, Tata Projects, and Ashoka Buildcon. The startup caters to more than 400 large clients and 3,000 smaller retailers.

Resilience and Projected Revenue

Sengupta indicated in December that the company was projected to achieve an Annual Recurring Revenue (ARR) of $100 million prior to the onset of the pandemic. The pandemic initially caused a significant decline in business, reducing it by roughly half for the first two months.

However, the company has since rebounded and is now on track to reach an ARR of $180 million. The startup’s goal is to increase this figure to $300 million by March.

Investor Confidence

Scott Shleifer, partner at Tiger Global Management, stated: “We are delighted to partner with Souvik and Aaditya in the growth journey of Infra.Market which is reshaping India’s construction materials supply chain. With pioneering technology innovation and the ability to stitch together private label brands, Infra.Market is positioned for strong growth, healthy economics and profitability.”

Sengupta added that the company is experiencing a surge in demand as infrastructure and real estate companies prioritize consistent quality and reduced delays in their procurement processes.