Infibeam Avenues’ Subsidiary Set to Raise $25 Million in Pre-IPO Round

• ByStartupStory     |    March 27, 2024

Infibeam Avenues, the AI-powered fintech company, is making waves in the market as its UAE-based subsidiary, Avenues World FZ-LLC, gears up to raise approximately $25 million through a pre-IPO round. The move is poised to attract the attention of investors and industry watchers alike, with the potential listing in the UAE capital market on the horizon.

Avenues World FZ-LLC is set to conduct the pre-IPO round with a select group of investors, signaling a significant milestone for the subsidiary. Upon the successful completion of this fundraising initiative, the subsidiary will undergo a transformation, ceasing to be a wholly owned step-down subsidiary of Infibeam Avenues.

According to the disclosure made by Infibeam Avenues to the bourses, the transaction is expected to be finalized within the next 45 days. Despite the forthcoming changes in ownership structure, Vavian International, Infibeam Avenues’ wholly owned subsidiary, will maintain a majority stake of 75 percent or more in Avenues World FZ-LLC. This retention of control underscores the strategic approach to managing the subsidiary’s evolution.

In response to inquiries regarding the transaction, Infibeam Avenues clarified that the pre-IPO round does not constitute a related party transaction, and the promoter companies have no vested interest in the process. Furthermore, Avenues World FZ-LLC is not classified as a material subsidiary under the provisions of the Companies Act, 2013, and SEBI Listing Regulations.

The recent development adds to Infibeam Avenues’ momentum, following the final authorization granted by the Reserve Bank of India (RBI) for operating as a payment aggregator under the Payment Settlements Act, 2007 for CCAvenue. This regulatory approval complements the company’s strategic objectives, positioning it for continued growth and expansion in the fintech landscape.

Commenting on the latest achievement, a spokesperson from Infibeam Avenues stated, “We are delighted to announce the upcoming pre-IPO round for Avenues World FZ-LLC, which marks a significant milestone in our strategic roadmap. This fundraising initiative reflects the confidence of investors in our subsidiary’s growth prospects and underscores our commitment to driving value for our stakeholders.”

The news comes against the backdrop of Infibeam Avenues’ robust performance in the market, with the company’s shares registering a notable uptrend over the past six months. Despite facing volatility, the stock settled at Rs 34.75 on March 26, reflecting a 1.56 percent decrease after a day of fluctuating trade.

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