Construction material unicorn Infra.market has divested about 10% stake in acquired concrete-maker RDC Concrete, according to a statement.
The company, which raised $150 million from Varde Partners in June, sold its stake for about $20 million to investors led by Ashish Kacholia in a secondary deal. RDC Concrete is currently valued at about $225 million, Infra.market said in the statement.
The development comes at a time when the construction material provider is in the process of listing itself and RDC Concrete, on public bourses.
“This divestment in RDC Concrete further paves the way for RDC’s IPO plans in the near future offering investors an opportunity to be part of the company’s future,” Infra.market said.
Infra.market had bought the company from private equity firm True North for $90 million (Rs 700 crore) in 2021. The latest deal is at an upside of over 2x on its original investment.
"The investment in RDC reflects our commitment to driving growth and fostering leadership within the construction industry,” Souvik Sengupta, co-founder, Infra.Market.
Led by MD & CEO Anil Banchhor, RDC Concrete is a concrete manufacturer in India, managing vendor sourcing, internal operations, and customer interactions through automated processes. The company relies on technology to allow timely delivery of concrete, in addition to tracking and monitoring.
Since its acquisition in 2021, RDC Concrete has grown its capacity to about 100 plants from 49. It further expects to grow to 180 by the end of next financial year.
“Our interactions with the team at RDC have left us with an understanding of the opportunities in India’s ready mix concrete market and the potential for the team at RDC to tap opportunities,” Ashish Kacholia said.
Infra.market, operated by Hella Infra Market Pvt. Ltd, clocked revenue of about Rs 11,100 crore for the year ended March 31, 2023. It is aiming to grow nearly 35-40% in FY24, founder Sengupta told VCCircle in an interaction this year.
In comparison, RDC concrete is expected to generate about Rs 2,000 crore in revenue by FY24 end, with its operating profit and revenue both growing about 2x since the acquisition, according to the statement.
Infra.market, backed by investors including the likes of Tiger Global, Accel, Evolvence India, Sistema Asia Fund, Foundamental and Nexus Venture Partners, has been betting on a House of Brands approach with the company acquiring stake in Strata Geosystem, consumer brand IVAS, Shalimar paints among others.