Digital payments solutions firm Infibeam Avenues reported a 14% year-on-year (YoY) growth in profit after tax (PAT) at INR 13 Cr on Tuesday, August 10 for the first quarter ending 30 June. Gross revenue was up 120% YoY at INR 216 Cr from INR 98 Cr last year.
Net revenue (gross revenue minus expenses) grew 3% year on year to INR 52 Cr.
Ahmedabad-headquartered Infibeam Avenues was founded in 2007 by Sachin Dalal, Vishal Mehta and Neeru Sharma. It provides end-to-end ecommerce payments solutions to small and large merchants, enterprises and governments.
The company is also the first ecommerce company in the country to be listed with SEBI (Securities and Exchange Board of India) after it received an approval to raise $69 Mn (INR 450 Cr) through an initial public offering (IPO).
The company reported that within the digital payments business, the value of transactions processed increased 170% YoY to INR 50,651 Cr. The payment gateway solution processes around $18 Bn payments while its software platform enables another $10 Bn worth of transactions annually. “If this trend continues, where people, institutions, and organisations are adopting digitalisation at such a faster pace, Infibeam Avenues may soon be processing more than $100 Bn transactions,” the company said.
“We started the new fiscal year by delivering a healthy quarter. We believe in the growth of India’s digital economy and we continue to strengthen our technology advantage in improving customer experience and enabling our merchants including enterprise clients to accomplish a successful digital transformation. With current transaction processing value of INR 50,000 Cr per quarter and millions of full KYC merchants on our platform, the AI driven lending opportunity is the future growth and margin driver for IAL”. said Mr. Vishal Mehta, managing director, Infibeam Avenues Limited.
Currently, more than 3 Mn merchants are on Infibeam’s platform, which is expected to reach 10 Mn merchants as it grows, said the company.
Across Infibeam Avenues’ enterprise solutions, the company reported that bill payments volume grew 479% YoY to 16 Mn while its agent network has increased to 725K compared to 600K last year.
The company stated that it has applied for a retail payment license from the Reserve Bank Of India (RBI) along with consortium partners Jio Platforms, Google and Facebook to offer payments globally.
Looking at the success of UPI and other digital payments systems in India, RBI had decided to allow NUE bids in August 2020. The only differentiator between NPCI and the NUE was that the latter would be a ‘for-profit’ venture to develop and push digital payments technology solutions. Former Itzcash founder and payment industry veteran Navin Surya has been appointed managing director and chief executive of this entity.