B2B marketplace for construction materials, Infra.Market has faced raids by tax authorities at its multiple office locations last week because of unpaid taxes and GST by some of its vendors.
“The search was related to unpaid taxes and GST by some suppliers who worked with us. The authorities conducted a search on the same and we have extended full co-operation and provided complete information in a timely manner. At Infra.Market, we give utmost importance to ensure we are in compliance with the law of the land at all times,” an Infra.Market spokesperson told BusinessLine.
An anonymous source close to the development also noted that the probe started as some vendors of Infra.Market had not paid GST and the authorities wanted to look at those transactions.
“Infra.Market is funded by foreign investors and authorities had doubts about how the company was able to raise such a huge amount of capital. Primarily because it is a company based out of Thane, and the city does not have as many start-ups,” the source added.
The raid caused a commotion at the company offices across Noida, Hyderabad, Bengaluru, Pune and Mumbai for about two days in the past week. Post which, the source said, everyone has resumed work while the tax authorities continue to do their research. Earlier this week, Infra.Market founders also held a meeting to brief the team about the ongoing investigation.
In August 2021, Infra.Market had raised $125 million funding from Tiger Global at a valuation of $2.5 billion. This round was raised five months after the company raised $100 million funding from Tiger Global, Accel Partners and others at a $1 billion valuation. Other investors in the company include Nexus Venture Partners, Evolvence India Fund, and Sistema Asia Fund among others.
After raising capital in August, the company had planned to acquire companies in the construction market. The company had posted a 3.5x jump in its revenues for the year that ended in March 2021 at ₹1,242.9 crore on the back of heightened demand from tier-1 and -2 cities. Infra.Market aims to solve issues such as a lack of price transparency, unreliable quality, fragmented vendor base, and inefficient logistics through technology.