‘Officials became suspicious after company raised enormous capital’
Offices of B2B marketplace for construction materials, Infra.Market were subjected to raids by tax authorities at multiple locations last week over 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 always give utmost importance to comply with the law of the land at all times,” an Infra.Market spokesperson told BusinessLine .
An anonymous source close to the development said the probe was initiated when some vendors of Infra.Market failed to pay GST, prompting authorities to examine those transactions.“Infra.Market is funded by foreign investors and authorities had doubts about how the Thane-based company was able to raise huge capital, primarily, because the town 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. Thereafter, everyone has resumed work, the source said, while tax officials continued their search. 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 from Tiger Global at a valuation of $2.5 billion, five months after the company raised $100 million