Fintech firm Infibeam Avenues has announced the acquisition of a 49% stake in Pirimid Fintech for Rs 25 crore. The move also marks Infibeam’s foray into the capital markets and digital lending software market.
Gujarat-based Pirimid provides solutions for the capital markets (hedge fund solution and robo advisory solution), banking and lending (digital lending and account aggregation), and AI and ML (APIs and Web 3.0). Pirimid works with financial institutions like the Bank of Baroda and local and global companies such as LendingKart, Ariana Investment Management (Singapore), and Armadillo (the UK).
Infibeam says the partnership will help Pirimid develop new digital lending solutions to streamline the lending process by leveraging the former’s expertise and technology resources. Primid’s new solutions will also help provide more efficient credit disbursement, enhanced customer experience, and improved risk management through advanced data analytics and AI algorithms, Infibeam added.
Pirimid joins a set of companies that have been fully or partially acquired by Infibeam Avenue or its subsidiaries. In November, Infibeam’s subsidiary, Infibeam Projects Management, acquired Sintex Corporate House from Aavas Trust, an Aditya Birla Group-owned entity, for nearly Rs 1 Billion. In August last year, the fintech firm acquired a 50% stake in Vishko22 Products & Services Pvt Ltd, a Gurgaon-based software startup. It has also acquired firms like Cardpay Technologies, Instant Global Paytech, and Uvik Technologies.
Infibeam Avenues Limited reported a consolidated gross revenue of Rs 789.9 crore with a profit after tax of Rs 38.3 crore in the second quarter of FY24.
This is a 6.3% surge in its scale when compared to the last quarter or Q1 FY24.
The company attributes the rise in total TPV to both a rise in payments as well as platforms TPV. While payments TPV rose 28% YoY to INR 769 billion (Rs 76,900 crore?), the company’s largest software platform implementation customer recorded a growth in TPV by 155% over Rs 1 trillion in a single quarter.
The company’s payment net take rates experienced a significant increase in Q2 FY24, up 25% YoY to 9.3 basis points, primarily due to a substantial influx of small merchants who, in turn, made the most substantial contribution to the surge in Infibeam Avenues Ltd’s payment business net take rates.
For the first time, the company recorded a net revenue of more than Rs 100 crore, due to an improvement in net margins which in turn led to strong operating performance. Both EBITDA and profit after tax, grew sharply, by 70% and 191%, respectively.