India’s first public-listed e-commerce firm Infibeam is planning to expand its business in IT, set up a payments bank and raise Rs 2,000 crore. The Ahmedabad-based company is also in talks with shareholders to change the name from Infibeam Incorporation Limited to Infibeam Avenues Limited.
In its general meeting to be held on 28th June, the company will further look to apply for Payments bank licence from Reserve Bank of India. Besides, it will also seek licence to operate digital wallet, co-branded wallets, and other Payment Instruments (open, semi-closed) licence from the banking regulator.
Infibeam will seek approval to expand the business into a full-fledged software business including carrying its business in the country and abroad. Besides, it plans ” to manufacture all kinds of hardware, plant, machinery, equipment, software, systems, used in the field of information technology”.
Infibeam made the first foray into payments when it acquired CCAvenue–a payments gateway service. The company also got an in-principle license from RBI for B2B payments of utility and service bills across the country. The company leverages its subsidiary CCAvenue for it.
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Notably, CCAvenue also on-boarded Bharat Bill Payments Systems (BBPS) facility for utility and services bill payments and it’s also won a bid to power GeM (the government e-marketplace).
As of now, payments bank operating in the country are Paytm, Airtel Payments Bank, JIO, Aditya Birla Payments Bank, India Post and FINO. Infibeam would compete with these players.
As we look into the company’s last financial year’s data, it falls amongst rarest e-commerce company’s in India which made a profit ever. It had witnessed a revenue of Rs 839.3 crore in FY18, a 90 per cent growth in revenue on a yearly basis with 102 per cent rise in net profit to Rs 88.1 crore.
Interestingly, a large amount of revenue growth in FY18 was driven by its payment affiliate — CCCAvenue.
The development was first reported by Moneycontrol via PTI