Infibeam Registers Rs 461 Mn Profit, Up 64% YoY

Infibeam Avenues has reported a consolidated gross revenue of Rs 9,120 million, accompanied by a Profit After Tax (PAT) of Rs 421 million in the third quarter of FY24 (Q3 FY24). The Q3 FY24 gross revenue witnessed an increase of 120 per cent, and Q3 PAT saw a growth of 64 per cent compared to the corresponding quarter of the previous financial year.

The Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) also exhibited noteworthy growth of 45 per cent Year-over-Year (YoY) to Rs 690 million.

It is notable that the third-quarter growth is attributed to the festive season and the increasing adoption of CCAvenue payment solutions by the merchants. The third quarter, being a festive period, witnessed a surge in financial transactions.

The increased transactions (TPV) were predominantly driven by growth in the hospitality, travel, telecom, airline travel, and hotel sectors. The TPV rose by 75 per cent YoY, reaching Rs 1,810 billion, with payment TPV increasing by 32 per cent to Rs 709 billion and platform TPV by 134 per cent to Rs 981 billion, during the third quarter.

In Q3 FY24, the company's India payment net take rates remained stable at 8.5 basis points (bps), the same as the previous quarter, but higher compared to the same quarter of last year. A constant rise in the number of merchants has been a key contributor to Q3 growth, with approximately 2,28,000 merchants added during the quarter, averaging approximately 2,500 daily. The company attributes this growth to the growing relationship with the bank partners and the impact of the Reserve Bank of India (RBI) licensing regime, setting high standards for fintech players and creating significant entry barriers for new players.

Vishal Mehta, chairman and managing director (MD), Infibeam Avenues, said, "Our third quarter (Q3) has witnessed strong growth, and we expect the same for the coming quarters. However, taking a long-term view after adding AI as our new major business growth driver, we expect to scale our revenue and profits. We are excited about the future and look forward to continuing to innovate and grow."

The board of Directors of Infibeam Avenues has approved the acquisition of 49.50 per cent equity from the existing shareholder of So Hum Bharat Digital Payments, which has applied for RBI’s New Umbrella Entity licence for retail payment systems with consortium partners. Post-acquisition, So Hum would become the Wholly Owned Subsidiary of Infibeam Avenues.

Vishwas Patel, Joint Managing Director, Infibeam Avenues, said, “Infibeam Avenues 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. CCAvenue TapPay, which is a digital Point of Sale (PoS), has been at the forefront of transforming the way merchants collect money from their customers."