STARTUP-STORIES

Aris Infra Plans IPO to Raise Rs 600-700 Crore, Backed by High-Profile Investors

SUMMARY

Aris Infra, a technology-driven construction material procurement platform based in Mumbai, is planning to raise Rs 600-700 crore through an IPO. The company is backed by high-net-worth individuals and family offices, including PharmEasy CEO Siddharth Shah, Think Investments, and partners from TPG Capital, Temasek, and BlackRock.

Founded in February 2021, Aris Infra leverages AI and machine learning to digitize the construction material supply chain, connecting property developers and vendors. The company, which has maintained profitability since inception, recorded Rs 700 crore in revenue and Rs 40 crore in Ebitda in FY24. It aims to expand further with the support of JM Financial, IIFL Securities, and Nuvama as the lead managers for the IPO.

Mumbai-based Aris Infra, a technology-driven construction material procurement platform, is set to raise Rs 600-700 crore through an initial public offering (IPO). The company, founded in February 2021 by Ronak Morbia and Bhavik Khara, aims to file a draft prospectus with the market regulator early next month. Senior executives revealed that the IPO will consist entirely of new shares, with existing shareholders retaining their stakes.

Aris Infra is supported by prominent high-net-worth individuals (HNIs) and family offices, including PharmEasy CEO Siddharth Shah, San Francisco-based Think Investments, and partners from private equity firms such as TPG Capital, Temasek, and BlackRock. Promoters and families currently hold a 65-70% stake in the company, while Think Investments owns 8.5%. Other HNIs, like Kedar Mankekar and the Prashant Singh family offices, hold 14% and 7% stakes, respectively.

Leveraging artificial intelligence and machine learning, Aris Infra streamlines the procurement of construction materials by connecting property developers and vendors through its platform, thus digitizing the overall supply chain of the construction industry. The company has raised Rs 160 crore in equity and an equivalent amount in debt, with the last funding round in January 2022 valuing the company at approximately $100 million.

"The industry is a multi-million-dollar market, but it is largely unorganized. We recognized the vast opportunity, especially in raw materials like steel, cement, aggregates, and chemicals,” said cofounder Ronak Morbia.

Aris Infra's vendor and customer list includes major industry players such as Tata Group, JSW, UltraTech Cement, ACC, Dalmia, Godrej, L&T, Apco Infra, SP Singla Constructions, and Lafarge. In 2022, the company acquired Unitern, a real estate advisory firm, and appointed its chairman, Srinivas Gopalan, as CEO.

"There is significant growth potential in this industry. With government spending and the real estate market's momentum, we have not even scratched the surface. Our investors believe this is an opportune time to go public and continue growing,” Gopalan stated.

In FY24, Aris Infra recorded a revenue of Rs 700 crore and earnings before interest, tax, depreciation, and amortisation (Ebitda) of Rs 40 crore, maintaining profitability since its inception.

The IPO is managed by JM Financial, IIFL Securities, and Nuvama. Aris Infra's competitors in the construction goods and services sector include Infra.Market, Yojak, Mistry Store, Build Supply, and Material Depot.