Infibeam Avenues' shares up after Rediff.com stake acquisition

On 5 August 2024, Infibeam Avenues' shares were trading at Rs 32.83, reflecting an increase of Rs 0.53 or 1.64% on the Bombay Stock Exchange (BSE). The company has finalised an agreement to acquire a 54% stake in Rediff.com India. The transaction involves a cash consideration not exceeding Rs 25 crore and is expected to be completed within 90 days. 

This acquisition, which is being financed internally, is a notable development for Infibeam Avenues. It marks a step towards expanding its digital financial services, integrating with a news platform, cloud-based email storage, and collaboration tools. For the quarter ending June 2024 (Q1FY25), Infibeam Avenues reported a net profit of Rs 70 crore, up from Rs 26 crore in the same period the previous year. Revenue increased by 1.5% to Rs 753 crore from Rs 742 crore year-over-year. 

The company's earnings before interest, tax, depreciation, and amortisation (EBITDA) rose by 42% to Rs 68 crore, compared to Rs 48 crore previously, with EBITDA margin improving to 9% from 6.5%year-over-year.

Infibeam’s future plans 

Infibeam aims to diversify its portfolio by integrating Rediff.com’s services, including enterprise email solutions and consumer financial services. This strategy is expected to generate new revenue streams and expand Infibeam's presence in the digital economy, supported by its established regulatory capabilities. 

Infibeam has extensive experience in regulatory compliance through its digital payment gateway, CCAvenue, and holds Reserve Bank of India (RBI) authorisation as a Payment Aggregator under the Payment and Settlement Systems Act, 2007. It also has a perpetual RBI licence for its bill payment business, Bill Avenue, to operate as a Bharat Bill Payment Operation Unit (BBPOU) under the Bharat Bill Payment System (BBPS). 

Internationally, Infibeam Avenues Saudi Arabia has achieved PTSP Certification from the Saudi Arabian Monetary Authority (SAMA), becoming the first Indian fintech company to do so. This certification allows Infibeam to function as a Payment Processor in Saudi Arabia.