Ecommerce Platform Infibeam Issues Preference Shares Worth $6.2 Mn To Network18 Group

Ahmedabad-based ecommerce major Infibeam has raised $6.2 Mn (INR 40 Cr) from Network 18 by issuing the Preferential shares in form of fully convertible warrants via its subsidiary TV18 Broadcast Ltd.

As per the company’s BSE filing dated February 14, 2018, the preferential shares have been issued at a conversion price of $3 (INR 186.91) per equity share.

The ecommerce platform has reported strong Y-o-Y growth for Q3 FY18. The financials of the company revealed a profit (after tax) of $4.8 Mn (INR 30.8 Cr), leading to a Y-O-Y growth of 146%. The growth is said to be achieved on account of Infibeam Web Services Segment led by increased transaction volume & digital Services growth.

Infibeam: A Newsmaker For The Year 2017

Infibeam is a cloud-based omni-channel ecommerce platform provider offering end-to-end ecommerce solutions to small and large merchants, enterprises and government.

The company has already switched from primarily subscription-based revenue model to ‘subscription and transaction’ based revenue model with the addition of payments, whereby there are earnings from online platforms and payments.

Initially, the company first came into limelight during the Snapdeal-Flipkart merger talks, with speculations of acquiring Snapdeal at $1 Bn. Post that Infibeam continued with its strategic investment spree and also left behind incumbents like TCS, Flipkart, and Amazon in the bid for Government Emarketplace.

Later, Mauritius-based LTS Investment Fund also sold over 363K shares of Infibeam, which fetched about $8 Mn (INR 50 Cr) in an open market transaction.

Infibeam is now successfully running on its platform GeM 3.0, where 20 States including Union Territories have already signed MOU with the centre as of Q3 FY18.

Other few business updates of Infibeam include

• AvenuesIndia, the subsidiary of Infibeam, launched BillAvenue, a unified interoperable online bill payments platform built on the Bharat BillPay (BBP).
• Successfully implemented and launched digital platform www.fortuneonline.in for Adani Wilmar’s Fortune, a top foods brand in India.

Infibeam is an apt role model for the loss-making ecommerce majors in India, which despite raising billion dollar funding, are incapable of posting profitability even for one quarter yet.

The strong Q3 FY18 performance in terms of positive net profit is a further indication of the company’s strong grip on its business processes and futuristic strategies.

Going ahead, we expect that Infibeam will further utilise the raised funding from Network18 Group to strengthen its digital services segment.

Update 1, April 11, 2018, 10:35 AM:

On April 5, 2018, Infibeam announced the funding officially and shared that the investment was structured and executed by Capital18, media and venture investment division of the Network 18 group. Through this tie-up, Infibeam plans to integrate multiple platforms of Network18 Group assets to build large customer base with its differentiated offerings. Infibeam’s offerings are targeted towards both businesses and direct consumers, and hence Network18 group’s assets, which have a strong presence across relevant audiences are a perfect fit to propel the next leg of growth for the company.

As shared by Sachin Tagra, Head – Capital18 in an official statement,” We invest media and strategic capital into emerging businesses and take part in their brand building journey. We partner with businesses with the objective of scaling brands to a great level of growth and acceptance.”