In a strategic move, investors led by Ashish Kacholia have successfully secured a 10% stake in RDC Concrete, a notable ready-mix concrete company, for a substantial $20 million. The transaction, facilitated by Tiger Global-backed Infra.Market, places the valuation of RDC Concrete at an impressive $225 million. This divestment decision by Infra.Market strategically precedes the company’s impending Initial Public Offering (IPO).
Infra.Market had initially acquired RDC Concrete in 2021 for a noteworthy $90 million. In addition to this latest development, the company has been in discussions with Varde Partners to potentially raise $150 million through the issuance of convertible instruments, though the outcome of this negotiation remains pending.
Founded in 2016 by Souvik Sengupta and Aaditya Sharda, Infra.Market has carved a niche for itself by utilizing technology to streamline the procurement process in the construction ecosystem. Operating across 20 states in India and boasting global offices in Singapore and Dubai, the company focuses on providing high-volume, branded construction products to address challenges such as price transparency, quality reliability, and logistical efficiency.
“The investment in RDC reflects our commitment to driving growth and fostering leadership within the construction industry. We look forward to witnessing RDC’s continued evolution and contributing to its promising journey in the sector as we welcome the new investors in the company,” remarked Souvik Sengupta.
According to the release, Infra.Market currently owns 100 plants across 48 cities and envisions expanding its Ready Mix Concrete (RMC) plants to around 180 by the end of the fiscal year 2025. The financial outlook for RDC Concrete appears robust, with an anticipated revenue of ₹2,000 crore by the conclusion of the present financial year. Impressively, RDC Concrete has seen its revenue and EBITDA grow over 2x since its acquisition in 2021.
The broader context suggests that while India’s concrete penetration remains among the lowest globally, there is a discernible shift towards manufactured concrete, especially in non-metro areas. Local players still dominate this sector, and the investment by Ashish Kacholia underscores the potential growth in India’s ready-mix concrete market.
Kacholia himself expressed optimism about the investment, stating, “Our interactions with the team at RDC have left us with a great understanding of the opportunities in India’s ready mix concrete market and the potential for the team at RDC to tap the opportunities.”
The expansion in India’s construction and infrastructure sector, coupled with the increasing development of metros, airports, and highways, positions construction material companies for substantial growth. Infra.Market, with its strategic moves and partnerships, appears poised to capitalize on these opportunities in the evolving Indian construction landscape.