In a significant milestone for the Tamil Nadu startup ecosystem, ArisInfra Solutions Ltd has successfully secured Rs 80 crore in a pre-IPO funding round, signaling strong investor confidence in the company’s growth potential. The funding round, announced on January 17, 2024, saw participation from prominent investors including Cognizant Capital Dynamic Opportunities Fund, JVS Holdings LLP, and Lamha Enterprise LLP.
The Mumbai-based technology-driven construction material provider strategically placed 36,03,792 equity shares at Rs 222 per share, demonstrating robust investor interest in its business model and future prospects. This pre-IPO funding comes on the heels of the company’s draft prospectus filed with the Securities and Exchange Board of India (Sebi) in August 2024, where it plans to raise Rs 600 crore through an initial public offering (IPO).
Vinod Raghavan, Founder of ArisInfra Solutions, commented on the funding, “This pre-IPO round is a testament to our innovative approach in the construction materials sector. We are leveraging technology to transform traditional infrastructure solutions, and this investment will accelerate our strategic growth initiatives.”
The proceeds from the funding are earmarked for multiple strategic objectives:
- Funding the company’s working capital requirements
- Investment in subsidiary Buildmex-Infra
- Purchasing partial shareholding from existing shareholders of ArisUnitern Re Solutions Pvt Ltd
- Repayment of existing loans
- General corporate purposes
Rajesh Kumar, an industry analyst specializing in construction technology, noted, “ArisInfra Solutions represents a new wave of tech-enabled infrastructure startups emerging from the Tamil Nadu ecosystem. Their ability to attract significant pre-IPO funding underscores the region’s growing reputation as a hotbed of innovative enterprises.”
The company’s proposed IPO is structured as a fresh issue of equity shares with no offer for sale (OFS) component, indicating the management’s confidence in raising capital directly for growth and expansion. Leading financial institutions JM Financial, IIFL Securities, and Nuvama are serving as book-running lead managers for the public issue.
This funding round highlights the continued robustness of the Tamil Nadu startup ecosystem, which has been gaining increasing attention from national and international investors. ArisInfra Solutions’ success demonstrates the region’s potential to nurture technology-driven enterprises that are reimagining traditional industries.
As the company prepares for its public market debut, the Rs 80 crore pre-IPO funding serves as a strong vote of confidence in ArisInfra Solutions’ business model, technological innovation, and growth trajectory.
