Global ecommerce solutions provider, Infibeam Incorporation Limited has signed a Memorandum of Understanding (MOU) to acquire DRC Systems Pvt Ltd, through its wholly owned subsidiary NSI Infinium Global Pvt Ltd.
Following the acquisition, Infibeam’s software team will grow by an additional 200 developers and technology professionals. According to the announcement made on the stock exchanges, the acquisition amount is over $1 Mn.
Founded in 2007 by Vishal Mehta along his co-founders Neeru Sharma, Vijay Subramanian and Ajay Chandra, Infibeam’s business can be divided into two parts – the ecommerce website Infibeam.com and services business BuildaBazaar(BaB) that provides customisable digital solutions and other value added services to enable merchants to set up online storefronts. It reportedly had more than 66,000 merchants onboard, at the end of December 2016.
On the other hand, DRC Systems provides cloud enterprise ERP solutions and develops customised software for ecommerce applications. Infibeam has been engaging their services to provide customised BuildaBazaar solutions to their merchants in domestic and international market.
According to Infibeam’s blog, its merchant base increased by 17,385 compared to last year Q3’ 16, a 36% growth. DRC Systems is a profitable entity with revenue in excess of $1.5 Mn (INR 10 Cr) as on Feb 28, 2017. Infibeam expects to grow the revenue and profits of DRC Systems under an integrated value added services offering.
Earlier in February 2017, Infibeam had signed an MOU to invest and merge fintech company, CC Avenues into their operations.
Since listing on the stock exchange, Infibeam has delivered significant return to the shareholders and the acquisition is expected to create value both in the near and long-term. According to its blog, the company has grown by 215% since listing at $348 Mn in April 2016.
