Zerodha’s Nikhil Kamath, others buys a minority stake in Infra.Market subsidiary for Rs 166 crore

Thane-based construction materials provider Infra.Market has sold a minority stake in its subsidiary RDC Concrete. 

Zerodha co-founder Nikhil Kamath led the transaction, which was worth $20 million (approximately Rs 166 crore). 

Other notable investors in this round include Capri Global Family Office, Verity Knowledge Solutions CEO Sumeet Kanwar, and Abhijeet Pai-led Wear Steels.

While the company did not disclose all the financial terms of the deal, an ET report said that the unicorn startup has sold a 7% stake in RDC Concrete.

Exploring growth opportunities

Infra.Market plans to use the funds from this transaction to explore growth opportunities in new products and market expansion.

"We look forward to witnessing RDC's continued evolution and contributing to its promising journey in the sector as we welcome the new investors in the company," said Souvik Sengupta, co-founder of Infra.Market. 

How well Infra.Market is performing financially?

Infra.Market reported revenue of approximately Rs 14,000 crore and a net profit of Rs 300 crore for the financial year 2023-24, although the company has yet to file audited financials for this period.

In the previous fiscal year, 2022-23, Infra.Market reported revenue of Rs 11,846 crore, marking a near 90% increase year-on-year, while net profit decreased to Rs 155 crore from Rs 186 crore in the prior year.

RDC Concrete IPO

RDC Concrete, a manufacturer of ready-mix concrete, was acquired by Infra.Market for $90 million in September 2021. The subsidiary has since expanded to about 100 plants across 48 cities.

Infra.Market intends to take RDC Concrete public in the coming months, with preliminary filings expected in June or July this year. For FY24, RDC Concrete reported net sales of over Rs 2,036 crore and a profit of Rs 54 crore. 

Nikhil Kamath's investments

Nikhil Kamath has been actively investing in various startups. On May 22, he invested in the Collective Artists Network, a talent management agency.

He also participated in a funding round for the men’s fashion brand Rare Rabbit and is involved in negotiations to acquire a stake in electric two-wheeler maker Ather Energy.

Additionally, in January, Kamath participated in a Rs 250 crore fundraising round for Nazara Technologies.