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Infra.Market Reports Impressive Revenue Growth and Sustained Profitability in FY23

Infra.Market, a Mumbai-based platform specializing in construction goods and services, has demonstrated remarkable growth over the past two fiscal years, with its gross revenue surging from Rs 1,240 crore in FY21 to an impressive Rs 11,846 crore in FY23. Despite this exponential growth, the company has managed to maintain profitability, showcasing its robust business model and operational efficiency.

In FY23, Infra.Market witnessed a substantial 90% increase in gross revenue, reaching Rs 11,846 crore compared to Rs 6,236 crore in FY22, according to its consolidated financial statements sourced from the Registrar of Companies. The bulk of its revenue, over 96%, is attributed to sales of construction materials, infrastructure goods, and technical equipment, which saw collections rise nearly 89% to Rs 11,383 crore in FY23.


The company boasts a widespread presence with over 4,000 retail stores and more than 25 exclusive brand outlets across 22 states, supported by a robust network of over 100 dedicated manufacturing units.


While the cost of procurement of materials accounted for a significant portion (86%) of its overall expenditure, Infra.Market's aggressive hiring efforts to sustain its growth led to a doubling of employee benefits expenditure to Rs 279 crore in FY23. Additionally, expenses related to freight, legal-professional services, power-fuel, information technology, and other overheads contributed to a 91.6% increase in total expenditure to Rs 11,607 crore in FY23.


Despite the surge in expenses, Infra.Market managed to maintain profitability, with profits standing at Rs 155 crore in FY23. The company's Return on Capital Employed (ROCE) and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin stood at 15% and 5.7% respectively. On a unit level, it spent Rs 0.98 to earn a rupee in FY23.


Infra.Market has attracted substantial investment, raising over $500 million across rounds in a mix of equity and debt. Tiger Global holds the largest external stake at 21.33%, followed by Accel and Nexus Ventures with 16.87% and 8.46% respectively.


In the competitive landscape of B2B e-commerce for industrial supply, Infra.Market competes with players like Zetwerk, OfBusiness, and Moglix. While Zetwerk reported significant revenue growth, OfBusiness emerged as the largest player with impressive revenue and profits. The sector is poised for consolidation, with smaller players likely to be absorbed by the top contenders.


Infra.Market's strong position among the top players indicates promising growth prospects, especially with India's push towards becoming a manufacturing hub. However, achieving faster bottom-line growth or improved margins may require strategic adjustments in procurement practices. Nonetheless, Infra.Market is well-positioned to capitalize on the country's expanding economy and continue delivering robust revenue growth in the foreseeable future.


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