A company focused on enhancing material sourcing and logistical operations for construction and real estate businesses in India has secured investment from three new sources.

Infra.Market, based in Mumbai, announced on Thursday a $20 million Series B funding round. This round was spearheaded by Evolvence India Fund, Sistema Asia Fund, and Foundamental, with participation from current investors Accel, Tiger Global, and Nexus. The company, established four years ago, has now raised approximately $50 million in total.

Infra.Market supports small-scale enterprises, including manufacturers of products like paints and cements, in enhancing their production standards and adhering to regulatory requirements. The company integrates load cells into these manufacturers’ facilities to guarantee consistent quality control, and also connects them with suppliers of superior raw materials and provides pricing guidance. Furthermore, it concentrates on ensuring timely deliveries for these businesses.

According to co-founder Souvik Sengupta, these enhancements empower smaller manufacturers to secure contracts with larger clients who demand higher performance levels.

“We are providing a value-added service to these small manufacturers, facilitating their business expansion. We do not possess the assets ourselves and are instead developing private label brands,” he explained in a conversation with TechCrunch. Currently, Infra.Market collaborates with over 170 small manufacturers and serves a substantial number of major construction and real estate companies, including industry leaders such as Larsen & Toubro, Tata Projects, and Ashoka Buildcon. Sengupta stated that the startup caters to more than 400 large clients and 3,000 smaller retailers.

Sengupta indicated that the company was projected to achieve an ARR (annual recurring revenue) of $100 million prior to the pandemic, a target that was temporarily reduced by almost half due to the crisis. However, the company has regained momentum and is now anticipated to reach an ARR of $180 million, with a goal of increasing this to $300 million by March of the following year.

Infra.Market is also assisting small manufacturers in reaching customers beyond India’s borders, with existing clients in Bangladesh, Malaysia, Singapore, and Dubai. Sengupta mentioned that the newly acquired funds will be used to expand into additional markets and to strengthen its presence in smaller cities and towns within India. Currently, international markets contribute to 10% of Infra.Market’s overall revenue.

“As a facilitator within this sector, Infra.Market has become a highly innovative company through the introduction of pioneering technological advancements in the procurement and distribution of building materials, serving the infrastructure and construction industries by improving logistics, financing, procurement, and project management for large-scale projects across key Indian markets. The company has rapidly demonstrated significant growth, supported by a robust business model and the extensive industry knowledge of its founders and management team,” stated Rohit Batra, partner at Evolvence India, in a press release.

The startup, which currently operates around half a dozen private label brands, also intends to broaden its product range to include categories such as electrical supplies, Sengupta added.

Sumit Jain, senior partner at Sistema Asia Fund, commented that Infra.Market is playing an increasingly vital role in India’s economic recovery following the COVID-19 pandemic.