Infibeam’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
On a sequential basis, Infibeam’s PAT increased 9.9% while its operating revenue grew 15.4% from the previous quarter
Adding AI as a horizontal business vertical supporting platforms and payments, is a significant milestone and will completely change the way it does business, said Infibeam
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Listed payments infrastructure company Infibeam Avenues Ltd’s consolidated profit after tax (PAT) logged a 64% jump 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, catapulted by festive demand and more merchants turning to its CCAvenue payment solution.
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.
On a sequential basis, Infibeam’s PAT increased 9.9% from INR 38.3 Cr in Q2 FY24, while its operating revenue grew 15.4% from INR 790 Cr in the previous quarter.
Meanwhile, the company’s transaction processing value (TPV) jumped 75% year-on-year (YoY) to INR 1,81,019.7 Cr in Q3 FY24, which, it said, were predominantly driven by growth across hospitality, travel, telecom, airline travel and hotel sectors.
“Infibeam Avenues Ltd has witnessed overwhelming growth in Q3, on the back of growth in platform and payment businesses. We expect to see more action in the coming years in the payment space, as our innovative payment technology – CCAvenue TapPay – is increasingly gaining its foothold in the domestic market,” said Vishwas Patel, joint MD of Infibeam.
CCAvenue TapPay is a digital PoS, which has been scaled up with new business strategies, through tie-ups with third-party vendors.
Infibeam has earned INR 858.2 Cr from payment business in the reported quarter, registering over a 130% YoY growth.
On the other hand, its ecommerce platform business saw a 28.8% increase YoY to INR 53.7 Cr in Q3 FY24.
Speaking on the company’s Q3 earnings, Infibeam’s chairman and MD, Vishal Mehta, said, “Whether it is in the case of our payment business vertical or platform business vertical, we have been tireless in our efforts to innovate and grow. Now, we have added artificial intelligence as a horizontal business vertical supporting platforms and payments. This is a significant milestone for us, and we believe that it will completely change the way businesses are done by us.”
We must note recently the company signed a pact with the Gujarat government for an investment of up to INR 2,000 Cr by 2030 to establish an AI hub for payments and platforms.
According to Infibeam, the rise in its number of merchants has also been a key contributor to the Q3 growth. The company added about 2.28 Lakh merchants during the quarter, averaging almost 2,500 daily.
Besides, the Reserve Bank of India’s (RBI) licensing regime for bill payment businesses implemented last year has also helped in streamlining this growth, said the company. The elimination of unlicensed players and reducing discount-related challenges have enabled Infibeam’s digital utility bill collection brand, BillAvenue, to experience substantial growth, it added.
With a growing business, Infibeam’s expenses have continued to rise and jumped 124.8% YoY to INR 862.2 Cr in Q3 FY24. In that, operating expenses comprised the largest chunk at INR 799.1 Cr.
Infibeam maintained its FY24 outlook of touching INR 3,000 Cr-INR 3,300 Cr in gross revenue and a PAT of INR 130 Cr-150 Cr.
Post its Q3 earrings announcement, Infibeam’s shares were trading marginally higher at INR 26.17 on the BSE by 2.20 PM IST.
It is pertinent to note that recently Infibeam acquired a 49% stake in Ahmedabad-based Pirimid Fintech for INR 25 Cr to further strengthen its foothold in the fintech ecosystem.
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