Thane-based Infra.Market raises additional $50 million debt as it prepares for IPO

Thane-based construction materials marketplace Infra.Market has raised $50 million in additional debt from Mars Growth Capital, expanding its total borrowing from the firm to $150 million, as it intensifies expansion efforts before its public listing.

The financing comes from Mars Growth Capital, a joint venture between Japan’s MUFG Bank and Liquidity Group. As part of the new arrangement, Infra.Market has also extended the maturity of its existing $100 million debt facility by five years. Northcote Luxe FinBrokers advised on the transaction.

Founded in 2016 by Souvik Sengupta and Aditya Sharda, Infra.Market supplies a wide spectrum of building and home improvement materials—from ready-mix concrete and steel to tiles, plywood, kitchen appliances and more. The company has built a substantial physical footprint, operating more than 250 manufacturing partnerships and reaching over 10,000 retail touchpoints across India.

The company said the new funds will be used to expand its product portfolio and geographical reach. It currently operates in over 15 product categories and claims to be the second-largest player by revenue in India’s ready-mix concrete segment and among the top three in autoclaved aerated concrete (AAC) blocks and tiles by capacity.

This is Infra.Market’s second major raise in 2025. In January, it raised about $121 million in equity funding from existing investor Tiger Global to fuel growth across Indian and global markets. The startup is also backed by marquee investors including Accel, Nexus Venture Partners, and Evolvence.

Infra.Market is now preparing to file its draft red herring prospectus (DRHP) with India’s markets regulator SEBI, with an aim to raise Rs 2,500 crore (approximately $300 million) via an IPO later in the fiscal year. It is reportedly targeting a listing in the third or fourth quarter of FY26, and has already appointed legal advisors and merchant bankers for the process.

The company’s IPO preparations follow a mixed year financially. In FY25, its parent company, Hella Infra Market, reported a 45% increase in EBITDA to Rs 1,596 crore, with margins improving to 8.7% from 7.5% in FY24. Profit after tax rose to Rs 492 crore from Rs 378 crore. However, India Ratings downgraded the firm’s credit rating in May to “BBB+/Negative” due to concerns around debt refinancing, liquidity stress, and negative cash flows from operations during the fiscal year.

Infra.Market’s consolidated gross revenue rose to Rs 14,530 crore in FY24 from Rs 11,847 crore in FY23. Its peers in the industrial commerce space, such as OfBusiness, Zetwerk and Moglix, reported revenues of Rs 19,296 crore, Rs 14,436 crore, and Rs 4,964 crore, respectively, for the same period.

“This $150 million potential commitment reflects our conviction in Infra.Market’s vision and execution, as well as the transformative impact it is having across the construction value chain,” said Ron Daniel, cofounder and CEO of Liquidity Group. “By combining Liquidity’s technology-driven approach and underwriting capabilities with Infra.Market’s scale and ambition, we are enabling sustainable growth and supporting Infra.Market’s emergence as a global infrastructure leader.”