Infibeam Avenues’ UAE Subsidiary To Raise $25 Mn In Pre-IPO Round, Shares In Focus

SUMMARY

Avenues World FZ-LLC is in the process of raising $25 Mn through a pre-IPO round from a select group of investors

The transaction is expected to be finalised within the next 45 days

Following this, Vavian International Limited, the wholly owned subsidiary of the company, will maintain a stake of 75% or more in Avenues World FZ-LLC

Shares of Infibeam Avenues will be on focus today (March 27) as the fintech company’s UAE-based subsidiary is looking to raise around $25 Mn in a pre-IPO round.

Avenues World FZ-LLC is in the process of raising $25 Mn through a pre-IPO round from a select group of investors, as it gears up for a listing in the UAE capital market. Avenues World FZ-LLC would cease to be a wholly owned step down subsidiary of the company post the said fund raise, Infibeam Avenues said in an exchange filing.

The transaction is expected to be finalised within the next 45 days. Following this, Vavian International Limited, the wholly owned subsidiary of the company, will maintain a stake of 75% or more in Avenues World FZ-LLC.

“The above would not fall within the related party transaction. The promoter companies do not have any interest. Further, Avenues World FZ LLC is not a material subsidiary as per the provisions of the Companies Act, 2013 and SEBI Listing Regulations,” the company said.

Avenues World FZ is a fintech company that offers multi-currency payment gateways, B2Biz payments, ccavenue phonepay and finance.

Founded in 2007, Infibeam is a listed company that offers comprehensive digital payment solutions and enterprise software platforms to businesses and governments across industry verticals.

Earlier this month, Infibeam Avenues secured final authorisation from the Reserve Bank of India (RBI) to operate as a payment aggregator via its payment gateway brand CCAvenue.

The company claims to have a base of more than 10 Mn merchants on its platform, and has onboarded over 500K merchants in H1 FY24 on the back of its growing relationship with bank partners and merchants.

Under the brand CCAvenue, the company also launched a mobile app which it claims to be India’s first pin-on-glass SoftPoS solution – CCAvenue TapPay for merchants and kiranas across the country.

Infibeam Avenues profit after tax jumped 64% to INR 42.1 Cr in the December quarter (Q3) of the financial year 2023-24 (FY24) from INR 25.7 Cr in the previous year’s quarter. The platform’s operating revenue more than doubled to INR 912 Cr in Q3 FY24 from INR 414.7 Cr in the corresponding period of last year.

The shares of Infibeam Avenues opened at INR 35.34 apiece on Wednesday (March 27).