Reliance Industry-owned Network18 has invested $6.2 million (Rs 40 crore) in Ahmedabad-based e-commerce platform Infibeam. The investment was structured and executed by Capital18, media, and venture investment division of the Mukesh Ambani-led group.
The investment is seen as RIL strong vision to spruce-up its position in the fledgling digital landscape. The group had recently acquired music streaming app Saavn and merged it with Jio Music. It also picked up a significant stake in ALTBalaji, a digital-only production house promoted by Ekta Kapoor.
Following the investment, Network18 and Infibeam will be integrated into multiple platforms of Network18 Group to build a large customer base.
“Infibeam’s offerings are targeted towards both businesses and direct consumers, and hence Network18 group’s assets, which have a strong presence across relevant audiences are a perfect fit to propel the next leg of growth for the company,” mention a joint press statement.
So far, Capital18 had made investments in companies including Yatra, BookMyShow, Webchutney, Burrp amongst several others. Notably, it recently restarted financing strategic deals after two years hiatus.
Meanwhile, Infibeam posted a net profit of Rs 30.8 crore on a consolidated total income of Rs 214.94 crore for the quarter ended December 2017. During the quarter the company claims to have registered significant growth in revenue due to increase in a transaction both on digital and payment platform.
The Ahmedabad-based firm is one of the few e-commerce firms in India to go public. Post fresh funding announcement, Infibeam stock went up over 4 per cent.
Other than its online retail businesses, Infibeam offers end-to-end e-Commerce services on the web to small and large merchants, enterprises and government.
Infibeam along with Intellect Design Arena had also won a contract to run the government’s e-marketplace portal (GeM) from where the Government of India purchases goods and services. The five years long contract is estimated to be worth around Rs 1,000 crore.