Infra.Market, the Mumbai-based B2B construction materials unicorn, moved to raise ₹1,250 crore (approximately $137 million) in debt funding.
To secure this capital, the company is using a combination of asset hypothecation and a significant pledge of promoter shareholding, marking a major liquidity move just as the firm prepares for its upcoming ₹5,000 crore IPO.
Structure of the Debt Raise
The funding is being facilitated through the issuance of 1,25,000 non-convertible debentures (NCDs) with a face value of ₹1 lakh each.
- Primary Lender: Singapore-based private credit platform Ascertis Credit has already infused the first tranche of ₹700 crore.
- Collateral Details: The debt is secured by:
- Promoter Stakes: Personal shares held by founders Souvik Sengupta (CEO) and Aaditya Sharda (COO).
- Group Entities: Pledges on shares of subsidiary companies, including RDC Concrete, Neptune Readymix, and Robo Quarries.
- Fixed Assets: Hypothecation of specific company-owned assets.
Strategic Use of Funds
According to regulatory filings, the proceeds from this ₹1,250 crore raise are earmarked for three primary purposes:
- Refinancing: Retiring existing high-cost borrowings to optimize the balance sheet.
- M&A Activity: Providing “dry powder” for potential acquisitions in the fragmented construction materials space.
- Capex: Funding ongoing expansion of their manufacturing and retail network.
IPO and Valuation Context
This debt round comes at a pivotal moment for the company’s public market debut:
- SEBI Approval: Infra.Market received the formal “go-ahead” from SEBI in January 2026 for its ₹5,000 crore IPO.
- Valuation: The firm was last valued at $2.8 billion in a September 2025 Series G round, which saw participation from Nikhil Kamath (NK Squared), Tiger Global, and Accel.
- Financial Performance (FY25): * Gross Revenue: ₹18,472 crore (up 27% YoY).
- Net Profit: ₹220 crore (a 42% decline compared to FY24, likely due to aggressive expansion and rising interest costs).
Comparison: The “Promoter Confidence” Signal
Market analysts often view promoter pledges with caution, but in the context of an impending IPO, it is being seen here as a move to maximize the company’s cash position to fuel growth before the “quiet period” of a public listing. This follows a trend of startup founders (like those of Zetwerk and Meesho) increasing their personal skin in the game through equity or debt maneuvers prior to going public.
