Infibeam announces 396% growth in FY17

Infibeam Incorporation Limited, India’s first listed e-commerce company, today reported growth of 396 per cent, clocking a profit of Rs 435 million in FY17.

The company said it has successfully turned the service segment (Infibeam Web Services) and product segment (Infibeam e-retail platform) profitable while recording consistent growth. It believes the entry into the international region is positive as realizations in foreign markets are much higher comparatively.

Infibeam Web Services has registered strong growth as revenue has increased to Rs 539 million, which is 97 per cent higher than Q4 FY16 and 56 per cent higher than FY16.

The company is optimistic about the focus on an off-shore-centric model and believes it to be margin accretive in the longer term, primarily due to ease of replicating BuildaBazaar and value added services infrastructure without significant costs and investment, stated the report.

The company’s e-retail platform is in forward investing mode at backend which includes expansion of supply chain capability and as GST opens up opportunity to cross boarding of movement of products which enable and facilitate the movement of products seamlessly across the border.

In Q4 FY 17, Infibeam e-retail platform clocked a product revenue at Rs 670 million, which is 39 per cent higher compared to Q4 FY16 and 20 per cent higher than FY16.

During March this year, the company signed a memorandum of understanding (MOU) to acquire DRC Systems Pvt Ltd through its wholly owned subsidiary NSI Infinium Global Pvt Ltd.

A few months ago, Infibeam acquired CC Avenues, a digital payment gateway company, for a valuation of Rs 2000 crore.

Last year, the company had executed an agreement with Gujarat Cooperative Milk Marketing Federation (GCMMF) to provide online ecommerce and mobile platform with integrated logistics framework for on-demand customer purchase of Amul Products.

Infibeam has successfully implemented the platform and managed the supply chain as pilot in Ahmedabad and Gandhinagar in Gujarat. The online services will be expanded to target B2B selling and other cities shortly at future date, said the report.