Infra.Market, the business-to-business construction material marketplace last valued at $2.5 billion (Rs 20,872 crore), has divested part of its stake in subsidiary RDC Concrete, a concrete manufacturer, in a round before the unit’s public listing.
The Tiger Global-backed unicorn has sold about $20 million worth of its stake in the subsidiary to investors led by Nikhil Kamath. Other investors in this round include Capri Global Family Office, Sumeet Kanwar from Verity, and Abhijeet Pai-led Wear Steels.
The B2B unicorn has divested about 7% stake in the entity, according to a person aware of the matter.
VCCircle first reported about the fundraising plans in February.
The development comes about six months after Infra.Market cut off 10% of its stake in RDC Concrete in December 2023 for about $20 million or Rs 166 crore. At the time, it was valued at about $225 million.
The latest deal would push the valuation of RDC Concrete even further to $286 million, as per VCCircle estimates.
Infra.Market still owns a considerable majority in the range of about 80% in the subsidiary, and is sitting at an upside of about 3X on its original investment. It had bought RDC Concrete from True North for Rs 700 crore in 2021.
Infra.Market intends to take the company public in the coming months. RDC is likely to file the preliminary papers in June or July this year, eyeing nearly a two-fold jump in valuation, VCCircle reported previously.
RDC, which makes ready-mix concrete, generated over Rs 2,036 crore in net sales, with nearly Rs 54 crore in profit in FY24. The company operates about 100 plants.
The company reported Rs 1,457 crore in revenue in the financial year ended 2023, with a net profit of Rs 29.5 crore, according to its latest available financials sourced by VCCEdge.
Meanwhile, Infra.Market co-founder Souvik Sengupta told VCCircle that the parent entity’s IPO is about 18 months away. The company ended FY24 with nearly Rs 14,000 crore in sales and another Rs 300 crore in profit, he said.
The startup clocked consolidated revenue of about Rs 11,846 crore for the year ended March 31, 2023, compared with Rs 6,236 crore in FY22. Its net profit, however, declined to around Rs 155 crore in FY23 from Rs 185 crore earlier.
The startup, founded by Sengupta and Aaditya Sharda in 2016, focuses on high-volume construction products under its own brands. It offers products in categories such as concrete, steel, paints, tiles, granites, electricals and construction chemicals. It acquired a bunch of companies in the last few years to expand its offerings. These include Strata Geosystems (India) Pvt Ltd, a geosynthetic manufacturing and geotechnical engineering company, construction equipment rental service Equiphunt, and Shalimar Paints.
Earlier this week, it raised $50 million from Mars Unicorn Fund to expand in Tointernational markets.