Aris Infra Solutions raises Rs 80 crore in pre-IPO round

Aris Infra, a technology-enabled platform for construction material procurement, has raised Rs 80 crore in a pre-initial public offering (IPO) funding round, according to sources.The round was led by Mukul Agrawal, founder of capital market investment and trading firm Param Capital, along with asset management firm Singularity Ventures, managed by Yash Kela, and Sundar Iyer, founder of Suryoday Trust and Rays of Life Foundation.

The funding was secured at a post-money valuation of Rs 1,800 crore, the sources added.

The company is expected to file its updated red herring prospectus (RHP) on January 27 (Monday).

ArisInfra had filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) on August 14, 2024, to raise up to Rs 600 crore. The public issue consists only of a fresh issue of shares and no offer-for-sale (OFS) component.

The Mumbai-based firm is backed by high net worth individuals (HNIs) and family offices, including PharmEasy chief executive Siddharth Shah, San Francisco-based Think Investments, and partners from private equity firms such as TPG Capital and BlackRock.

ET first reported about Aris Infra’s IPO plans on June 27.In the DRHP, the company noted that it intends to use the net proceeds from the IPO to repay and prepay outstanding borrowings, support its working capital requirements, and invest in its subsidiary, Buildmex-Infra Pvt Ltd, for its working capital needs. Additionally, the company plans to purchase partial shareholdings from existing shareholders of its subsidiary, ArisUnitern Re Solutions, and allocate funds for general corporate purposes and potential acquisitions.

Founded in February 2021 by Ronak Morbia and Bhavik Khara, ArisInfra leverages artificial intelligence (AI) and machine learning (ML) to streamline the procurement of construction materials. The platform connects property developers and vendors, digitising the supply chain of the construction industry.

Some of its major clients include the Tata Group, JSW, UltraTech Cement, ACC, Dalmia, Godrej, Larsen & Toubro, Apco Infra, SP Singla Constructions, and Lafarge.

The company recorded revenue of Rs 700 crore and earnings before interest, tax, depreciation and amortisation (Ebitda) of Rs 40 crore for fiscal 2024.

JM Financial, IIFL Securities, and Nuvama Wealth Management are the book-running lead managers for the proposed issue.

This comes as the construction material space is seeing heightened competition from newer players. Infra.Market, a prominent player in the space, raised Rs 1,050 crore in its pre-IPO round at a $2.8 billion valuation. The funding round saw participation from investors like Tiger Global, Evolvence, Foundamental GmbH, investor Ashish Kacholia, Zerodha cofounder Nikhil Kamath, and Capri Global, among others.

ArisInfra also joins a growing list of new-age companies gearing up for IPOs. Prominent companies preparing to hit the public market soon include Captain Fresh, Lenskart, Flipkart, Zetwerk, InCred, PhysicsWallah, DevX, Ather Energy, Boat, and Bluestone, among others.