Infibeam separates SME e-commerce service and marketplace biz

India’s first public e-commerce company, Infibeam Avenues, has demerged Suvidhaa (Suvidhaa Infoserve Private Limited) and DRC (DRC Systems India Private Limited) to unlock its shareholder’s value.

As per the Ahmedabad-based company, it will demerge its SME e-commerce and e-commerce marketplace businesses of NSI (NSI Infinium Global Private Limited ) to Suvidhaa while the theme park & event business to DRC Systems. 

Post demerger, Infibeam Avenues Group will continue to hold 5% in Suvidhaa, and 25% in DRC Systems and both entities will be listed on the stock exchanges - BSE and NSE.

Each shareholder of Infibeam Avenues will get 197 shares of Suvidhaa’s stock for every 1,500 shares of Infibeam. On the other hand, DRC will issue 1 equity share for every 412 equity shares to the shareholders of Infibeam Avenues Limited.

Last year, Suvidhaa picked up over 6% stake in NSI Infibeam Global for Rs 25 crore at a valuation of Rs 500 crore whereas Infibeam had acquired DRC Systems in 2017.

"With this verticalization, each business would be able to focus on its growth trajectory, " said the company in a press statement. Infibeam will focus on fintech, enterprise technology platform and data business, while the demerged Suvidhaa will focus on SME e-commerce services and omnichannel e-marketplace.

Primarily started as an e-commerce firm, it had expanded into B2B services such as payment gateway (CC Avenue), bill payments (Bill Avenue), and data center services.

The company operates as a payment processor for online merchants, websites and commercial users for which it charges a fee on transactions. 

Infibeam’s payment system CCAvenue provides nearly 250 unique payment options in India, processing payments across 27 international currencies that enable online and mobile payments for merchants. 

After registering profitable financial year FY19, Infibeam has also recorded 129% growth in its consolidated net profit at Rs 28.8 crore in the quarter ending on June 2019 or Q1 FY20.