Shares of Infibeam plunged over 2 percent, on Monday on the BSE. At 9:36 am shares of the fintech firm were trading at Rs 15.6, a 2.5 percent decline from the previous close on the BSE.

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Fintech firm Infibeam Avenues has picked up a 50 percent stake in Gurugram-based software startup Vishko22 Products & Services Pvt to expand the business internationally.

The fintech firm aims to develop omnichannel enterprise software products and services with seamless integration for domestic and international eCommerce marketplaces with the transaction.

“We expect to keep on investing in interesting, futuristic, products and technology, that allows us to keep on enhancing the experience of our clients, customers and merchants,” Vishal Mehta, Managing Director, Infibeam Avenues, told CNBCTV18.com.

The company recently incorporated a wholly-owned subsidiary, Infibeam Avenues Australia Pty Limited, to carry out online digital payments and fintech services business. They also have international operations in countries such as the United Arab Emirates, Saudi Arabia, Oman and the United States.

The company’s board has also approved raising Rs 161.5 crores through preferential allotment of fully convertible warrants.

Where will the funds be used?

The fintech firm, which started as an e-commerce platform, now works in the verticals of digital payments and developing e-commerce enterprise software. Now, Infibeam Avenues is venturing towards physical payments through their mobile application CCAvenue Tap Pay.

According to Mehta, the app will reduce the dependence of sellers on point-of-sale devices (the payment counter in a retail store where customers pay for their purchased goods.) It will also remove the troubles that come with handling the hardware for accepting payments.

“Every kirana does not have a point of sale device but has a mobile phone. So, you could just download the app and start accepting payments,” said Mehta.

Mehta expects CCAvenue Tap Pay to account for more than 30 percent of the company’s revenues in Gross Merchandise Value (GMV) in the next two to three years. “We'll use this capital to build out our international and domestic presence,” added Mehta.

Building an omnichannel presence

Infibeam plans to develop omnichannel enterprise software products and services with seamless integration for domestic and international eCommerce marketplaces with this transaction.

Earlier this year, the company acquired the payments-focused Uvik Technologies in a cash and stock deal. It plans to use Uvik's technology in having any smartphone become a payment device for contactless payments.

With Vishko22, Infibeam plans to tap the growing demand for omnichannel enterprise software solutions from B2B eCommerce players in India and globally, focusing on providing customised software solutions that allow unifying and synchronising online and offline businesses.

The finances

The consolidated profit after tax for Infibeam Avenues for the April-June quarter stood at Rs 23 crore, a growth of 69 percent from the corresponding period a year ago, on the back of positive momentum in the shift towards digital payments.

Net revenue grew by 41 percent from Rs 52 crore in the corresponding period a year ago to Rs 74 crore, the company said in a regulatory filing.

“Our guidance for the full year is about Rs 4 lakh crore, you know, and I think you, in the first quarter, we are pretty much on track,” said Mehta.

First Published:Aug 26, 2022 5:31 PM IST