Ahmedabad-based Infibeam, which runs payments processing services CCAvenue, announced that its Dubai-based wholly owned subsidiary Infibeam Global EMEA FZ-LLC has signed a memorandum of understanding (MoU) with Middle East’s investment firm UniPropitia FZCO.
Through this strategic alliance, Infibeam is looking to expand its web service platform in the Arab League countries. Also, as part of the deal, UniPropitia will acquire 51% stake in the Dubai subsidiary for a total consideration not exceeding $25 Mn.
With this alliance, both Infibeam and UniPropitia are aiming to create a unique business synergy to offer large scale technology implementations to large Institutions and governments in the region.
Infibeam also said will acquire 100 % stake of UAE-based online payment processing company Vavian International Limited, which will now act as its direct wholly owned subsidiary.
A Statista report predicted that the digital payment segment in the Middle East and Africa will be growing at 14% year-on-year by 2022 to reach $78.4 Bn from the current $46.4 Bn.
Infibeam 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 government.
Infibeam Shifts Focus To Offline Payments
Infibeam has been gearing up and making changes in its business model in the past couple of years. One of the major step being, selling off its subsidiaries.
In January, the company had sold its subsidiary Infinium India Ltd (IIL) to Ingenius E-commerce Pvt Ltd in a deal worth $8.4 Mn (INR 60 Cr).
Currently, Infibeam is also looking to explore the offline payment market. It invested an undisclosed amount of money in Mumbai-based Instant Global Paytech Private Ltd (IGPL) to build a next-generation payment technology platform for offline merchants and retailers transactions in Tier 2 and Tier 3 cities.
In February, the company reported a net profit of INR 26.6 Cr ($3.6 Mn) for the quarter ended in December 2018, as compared to INR 1.9 Cr ($266K) in December 2017. The total revenue of the company more than doubled to reach INR 150.3 Cr ($21.09 Mn) for the quarter as compared INR 73.6 Cr ($10.3 Mn) in the last year.