Tax probe faced by Tiger Global-backed unicorn startup Infra.Market
- ByStartupStory | March 19, 2022
Infra.Market, a Business-to-business construction materials startup, faces an investigation by tax authorities for allegedly not paying taxes. Offices of the company in several cities, including Noida, Hyderabad, Bengaluru, Pune and Mumbai have been raided by the Income Tax authorities.
Sources said that the homes of the founders’ were also raided. He further added that some fake invoices and tax evasion notices and investigations were also being carried out for the same.
A spokesperson for the company said in an emailed response that at Infra.Market, an utmost importance is given in order to ensure they are in compliance with the law of the land at all times. The assertions in the mail are incorrect and misleading and therefore, denied.
He further added that certain queries have been raised by the tax authorities due to non-filing of returns by certain suppliers and they are duly cooperating with them. However, they are legally bound so as to not publicly comment on it until further notice.
The raids came at a time when Infra.Market was reportedly stitching together a funding round from new and existing investors, looking to raise close to about $450 million at a valuation of over $4 billion. In January 2021, Infra.Market entered the unicorn club when it raised around $100 million in a round led by Tiger Global. It again raised $125 million via Tiger Global, catapulting its valuation to worth $2.5 billion.
Infra.Market was founded by Souvik Sebgupta and Aaditya Sharda in the year 2016. It uses technology in order to provide a smooth procurement experience for construction companies.
In October 2021 it said for the year ended March 2021, it had posted a 3.5x jump in revenues to Rs 1,242.9 crore on the back of heightened demand from tier I and II cities, states a report. Infra.Market had reported revenues of Rs 350.8 crore, for 2019-20.
Against Rs 13.6 crore in FY20, the company’s earnings before interest, tax, depreciation and amortisation (Ebitda) stood at Rs 68.9 crore in FY21.
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