Infra.Market, a Mumbai-based B2B online procurement marketplace for real estate and construction materials on Monday said that it has raised $20 million in Series A funding round led by Tiger Global, Nexus Venture Partners, and existing investors Accel Partners.
The startup plans to use the funds for expansion in cities such as Hyderabad, Ahmedabad, and Chennai and also aims to grow its revenue from the existing $5 Mn per month to $20 Mn.
Founded in 2016 by Aaditya Sharda and Souvik Sengupta, Infra.Market is a B2B online procurement marketplace for real estate and construction materials, with technology as their focal point.
Infra.Market has built a centralised online market for real estate and construction materials that offers fair pricing and enhanced technology experience to help customers get the best pricing for their needs. It does this by aggregating customer demands, matching them with the supply chain, and offering economies of scale on material pricing, along with affordable credit options that were earlier not available to B2B customers.
Earlier in August 2019, the company had announced that it had raised $3.5 million in a seed round from Accel Partners. It also raised a debt round of $4.5 million from InnoVen Capital in September. Dhruv Agarwala, the Founder and CEO of PropTiger is also an angel investor in the startup. “This round happened before we expected, we are not looking to raise more funds. Currently, we are a high margin company and we have to stick to that. Our current monthly revenue is at $5 million and we aim to use the funds to grow the revenue to up to $20 million per month,” Co-founder Souvik Sengupta said.
By March 2020, Infra.Market expects to be operational in at least five cities. The startup will also focus on expanding its product line to become a one-stop B2B ecommerce platform. Infra.Market’s client list includes the likes of ACC, Prism Johnson, JSW, IndiaCements, Dalmia, Nuvoco, Wonder Cement (earlier Lafarge), Capacite, Shapoorji, TataProjects, RDC Concrete, Sobha Developers, NCCCL, Godrej, and Swastik Infra.
“While today we handle some of the clients’ product requirements, we want to expand our offerings and want their entire procurement to go through us,” Souvik said.
The company is competing with players such as Moglix, IndustryBuying, OfBusiness, and Power2SME. The industry has a positive outlook with experts forecasting that India is going to be the third-largest construction market globally by 2025. In fact, the construction sector has been the second-highest recipient of FDI in 2017.
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