Infra.Market, a business to business (B2B) marketplace for construction materials, reported a net profit of ₹186 crore for FY22, up from ₹36 crore a year ago, on the back of horizontal expansion, the company said on Thursday.
Revenues also grew five-fold to ₹6,236 crore for the financial year ended 31 March 2022. Its operating profitability or earnings before interest tax, depreciation and amortization, or Ebitda, grew to ₹410 crore from ₹69 crore in FY21.
"Ebitda margins saw substantial improvement as it increased from 5.5% in FY21 to 6.6% in FY22," the company said.
“Our results speak for themselves, growth coupled with profitability is the need of the hour and something we have always believed in, but most importantly, the need to build business models with deep fundamentals which can withstand cycles and funding winters," Souvik Sengupta, cofounder, Infra.Market said.
The company counts Accel Partners, Evolvence India, Sistema Asia Fund, Foundamental Gmbh and Nexus Venture Partners as its other investors. In June, Infra.Market raised $50 million in growth capital from Liquidity Group’s MARS Unicorn Fund at a valuation of $2.5 billion.
Founded by Sengupta and Aaditya Sharda in 2016, Infra.Market uses technology to provide a procurement experience for players in the construction ecosystem. It focuses on high-volume construction products under its own brands and aims to solve issues such as a lack of price transparency, unreliable quality, fragmented vendor base, and inefficient logistics. It is currently present across 20 states in India and recently set up offices in Singapore and Dubai.
It has now gone beyond B2B and has expanded its focus on retail and B2C opportunities and built its own private labelled brands.
The company already has 12 active franchise outlets across tier II cities in India and plans to scale this up to 50 stores by March 2023.