Infibeam Avenues: Profit Surge, Merchant Growth, and Exciting Fintech Ventures

• ByStartupStory     |    August 9, 2023

Indian payments infrastructure company Infibeam Avenues has reported a standalone net profit of Rs 27 crore for the quarter ending on June 31, 2023, marking a 17% increase compared to the same period last year. However, this figure was 27% lower than the previous quarter’s net profit of Rs 37 crore for the ending quarter in March 2023. The company’s operating income and expenses experienced a nearly threefold increase, reaching Rs 697 crore and Rs 662 crore respectively.

On a consolidated basis, Infibeam achieved a revenue of Rs 742 crore, a year-on-year growth of around 77%. The payments business contributed Rs 686 crore to this revenue, while the e-commerce platform business accounted for the remaining amount. The consolidated profit decreased by 34% to Rs 25.4 crore compared to the previous quarter.

“The company has achieved historical milestones despite a seasonally weak first quarter. The gross revenue and adjusted EBITDA (operating profit) in the quarter has been the highest in the history of Infibeam. The operating profit and PAT have been adjusted to exclude the notional value of mark-to-market investment gain/loss for the accurate evaluation of the company’s operating performance,” a company statement read. 

Despite a seasonally weak first quarter, the company noted historical milestones, achieving its highest-ever gross revenue and adjusted EBITDA (operating profit). The company clarified that the operating profit and PAT (profit after tax) were adjusted to exclude the notional value of mark-to-market investment gain/loss for accurate evaluation.

Infibeam saw a significant rise in merchant adoption of its digital payment platform, adding an average of 9,500 merchants daily during the quarter, totaling to 10 million merchants across its online business. The surge in demand followed RBI’s directive to rival firms such as Razorpay, Cashfree Payments, PayU, and Paytm, which were asked to halt onboarding new merchants.

Infibeam’s mobile payment solution, CCAvenue TapPay, was downloaded by over 300,000 merchants by June 2023. The total payment value (TPV) increased by 26% to Rs 1.18 lakh crore compared to the previous quarter, and the company processed transactions worth Rs 4.5 lakh crore in FY23.

With a recently acquired payment aggregator license, Infibeam is exploring plans to develop apps for small merchants, large companies, and retailers to integrate with the Open Network for Digital Commerce (ONDC). The company is awaiting a retail payment network license.

Infibeam also revealed plans to establish an AI Hub at GIFT City, focusing on fintech-building AI solutions for fraud detection and authentication. Strategic investments will be made in this project over the next three years. Initially, the focus will be on digital payments and financial space, where AI and ML algorithms will detect fraudulent activities in real time. The long-term goal includes developing customized fraud detection and prevention solutions for various sectors.

“Under FAR initiative, setting up AI HUB is a bold and strategic move with a comprehensive plan to foster AI innovation, attract talent, and create a supportive ecosystem that will develop and offer frauds management solutions,” said Vishal Mehta, Managing Director, Infibeam Avenues. 

“The rapidly expanding digital marketing industry is poised for exponential growth in the upcoming years, attributed to the widespread digitalization of economies worldwide,” said Mathew Jose, CEO of Odigma Consultancy Solutions.

Infibeam also announced the listing of its digital marketing subsidiary, Odigma Consultancy Solutions, on Indian exchanges. The subsidiary deals with content, web development, social media management, email marketing, and search engine optimization. The company has increased its stake in Fable Fintech, a digital cross-border remittance solution provider, to 41% through additional equity and convertible debentures.

Infibeam has boosted its ownership in Fable Fintech, a digital cross-border remittance solution provider, by an additional 25%, increasing its stake to 41%. This was accomplished through a cash consideration of Rs 3.2 crore and an additional Rs 1.4 crore via Compulsorily Convertible Debentures (CCDs). Fable Fintech’s solution can seamlessly integrate into various payment systems and compliance networks, facilitating companies, including banks, to establish their own cross-border transaction services. In the financial year 2022-23, Fable Fintech achieved a turnover of Rs 14.92 crore. Infibeam’s move aligns with its objective of enhancing cross-border e-commerce transactions and advancing the remittance sector toward cashless fintech solutions, as indicated in exchange filings.

Follow Startup Story