Infibeam Avenues Q1 Results: Profit Up 70%; Board Clears E-Comm Tech Transfer To Rediff For Rs 800 Crore
As part of the transaction, pending shareholder approval, Infibeam's stake in Rediff will increase to 82.7% from 54.1%, the statement said.
Infibeam Avenues Ltd. on Friday said its profit after tax rose over 70% to Rs 85.50 crore in the June quarter mainly on the back of enhanced pricing control through AI deployment, which improved monetisation and merchant experience.
The company said in a statement its board has also approved strategic transfer of e-commerce platform infrastructure business to Rediff.com India Ltd. for Rs 800.39 crore.
The total consideration amount of Rs 800.39 crore would comprise Rs 400 crore in cash and Rs 400.39 crore by way of issuance of fresh equity shares.
As part of the transaction, pending shareholder approval, Infibeam's stake in Rediff will increase to 82.7% from 54.1%, the statement said.
The company, which owns payment platform CCAvenue and internet firm Rediff, had posted a PAT of Rs 50.2 crore in the year-ago period, according to an investor presentation.
The fintech company posted a 72% growth in consolidated gross revenue to Rs 1,280.2 crore in the June quarter compared to Rs 745 crore in the year-ago period.
"Our AI-embedded fintech products have delivered better pricing control and enhanced customer experiences," Vishal Mehta, Chairman and Managing Director, Infibeam Avenues, said in a statement.
The Infibeam board also approved a business transfer agreement with Rediff.com India Ltd to sell and transfer its platform business undertaking through a slump sale, the statement said.
After the deal, Infibeam said it will 'double down' on digital payments and AI innovation through CCAvenue and Phronetic.AI, respectively.
Rediff is also evaluating capital-raising options, including a potential IPO, to fuel rapid growth across its product portfolio and expand its presence in the enterprise SaaS and digital commerce markets.
