Infra.Market, the IPO-bound building materials platform, has acquired a majority stake in Metro Group, a prominent ceramic tiles manufacturer, in a share swap deal valued at ₹200 crore, according to recent filings with the Ministry of Corporate Affairs.
Sources familiar with the matter told that the strategic acquisition is aimed at strengthening Infra.Market’s presence in the tile manufacturing space, as it continues to build scale across its core verticals.
This development follows Infra.Market’s 2023 acquisition of a 57% stake in Emcer Tiles and reinforces its position in India’s ceramics sector. The company previously stated that it has become the second-largest player in the domestic ceramic industry, with 19 manufacturing units and three tile brands under its umbrella.
Based in Thane, Hella Infra Market Ltd has been actively pursuing inorganic growth to broaden its portfolio. Notable past acquisitions include RDC Concrete (₹730 Cr deal in 2021) and a strategic investment in Shalimar Paints in 2022.
Founded in 2016 by Souvik Sengupta and Aaditya Sharda, Infra.Market operates as a tech-enabled marketplace for construction materials, while also manufacturing and retailing products under its private-label brands. Its diverse portfolio includes ready-mix concrete, tiles, paints, and other building materials sold across B2B, B2C, and retail networks.
On the financial front, Infra.Market saw its net profit surge by 144% to ₹378 crore in FY24, up from ₹155 crore in FY23. Revenue also rose by 23% year-on-year to ₹14,530 crore, with more than 80% of earnings stemming from its B2B operations.
The acquisition comes as the unicorn prepares for its upcoming IPO, expected to be in the range of $500 million to $700 million. Despite having ₹275 crore in cash reserves as of FY24, the company has already raised over $170 million this year, including $50 million in debt from Mars Growth Capital and $121 million in equity from existing backers such as Tiger Global, Foundamental, and Evolvence.
However, the path to public listing hasn’t been without hurdles. India Ratings recently downgraded the company’s rating to BBB+ with a Negative Outlook, citing liquidity pressure, cash flow challenges, and dependence on debt refinancing—particularly related to its Singapore-based subsidiary’s receivables.
In response, Infra.Market assured stakeholders that the rating agency had not accounted for the company’s improving financials, fresh equity inflows, and anticipated liquidity events like the IPO, which it believes will significantly strengthen its balance sheet.
