Steel-based construction firm Geodesic Techniques received an $11 million funding from VC funds, Mayfield and SVB, in return of a “significant minority stake.” The design and build contractor plans to use the capital to drive its expansion including the setting up of a manufacturing facility in Bidar.
Mayfield led the round of funding with Vikram Godse, managing director of Mayfield Advisors, joining the Geodesic board. Incidentally, the global VC fund has been a very active investor in the Indian market.
“There is tremendous potential in India for steel-based commercial structures. Even though we received several project enquiries from the West Asia, we will pursue the Indian market, which is poised to grow substantially. This infusion gives us the required working capital to set up a new facility,” Geodesic’s MD Srinidhi Anantharaman, said.
Steel prices are not putting a dampener on the company’s optimism either. Though primary steel producers have refrained from introducing another rate hike, difference between domestic and international prices have increased Rs 15,000-20,000 per tonne.
Geodesic is very optimistic on the demand for fabricated steel used in commercial complexes. The company, in fact, has a Rs 150 crore order book in the pipeline, while its executable order book for the year to end-March 2009 is between Rs 150-200 crore.