Here’s how this profitable unicorn ended up in the income tax net

Building materials and e-commerce unicorn equipment Infra.market, which is a rare profitable start-up, found itself in the tax net after the income tax department issued a statement on Sunday saying that the company had made huge expenditures in unaccounted cash and secured inflows, amounting to over Rs 400 crore. The IT department, without naming the start-up, said a Pune and Thane-based unicorn, which has a pan-India presence and a turnover of Rs 6,000 crore, at whose premises raid operations have been carried out.

The IT department further said that a total of 23 company offices were raided across the country in search operations. “A large amount of evidence for the prosecution in the form of paper documents and digital data was found and seized during the search operations. This evidence revealed that the group booked bogus purchases, made huge unrecorded cash outlays and secured accommodating entries totaling more than Rs 400 crore. This evidence was confronted with the directors of the group, who admitted under oath this modus operandi, disclosed additional income of more than Rs 224 crore in various years of assessment and, as a result, offered to pay their tax debt owed the IT department said in a statement.

Furthermore, investigations revealed that Infra.market had secured huge foreign funding through the Mauritian route by issuing shares at exorbitant premiums. “During the search operation, a complex web of certain shell companies based in Mumbai and Thane was also uncovered. Preliminary analysis has revealed that the total number of accommodation entries provided by these bogus entities exceeds Rs 1,500 crore,” the IT department said.

He added that so far, unaccounted cash of Rs 1 crore and jewelry worth Rs 22 lakh have been seized.

A spokesperson for Infra.Market said, “We continue to cooperate with authorities and provide all necessary information to the department. Since the case is pending, we would not like to comment further.

Notably, Infra.Market was last valued at $2.5 billion in August last year after entering the unicorn club in March 2021. The company’s finances have made it an extremely attractive business. for investors, with the startup seeking to raise more funds at over $4 billion in valuation. , according to some media.

Unlike many unicorn start-ups, Infra.market grew its profit base even as expenses also increased significantly in FY21. According to the company’s financial statements for FY21, The company’s profit reached Rs 36 crore, compared to Rs 8.7 crore for FY20. Revenue for FY21 was Rs 1,234 crore compared to Rs 351 crore for FY2020. financial year 2020.

The company counts Accel India, Tiger Global, Nexus Venture Partners and Innoven Capital among its main investors.