Digital payment democratisation boosts Infibeam profit up by 241%, firm declares 10% dividend
In the second quarter, consolidated profit stood at Rs 25.9 crore compared with Rs 7.6 crore in the same corresponding period of the last financial year.
In the second quarter, consolidated profit stood at Rs 25.9 crore compared with Rs 7.6 crore in the same corresponding period of the last financial year. During the quarter, the company recorded strong growth in operating margins and profitability. It also declared a 10% dividend.
Infibeam Avenues, which is India’s first e-commerce entity to be listed, have pivoted towards digital payment space in the last few years, mainly focusing on the backend of the digital payments after it acquired CC Avenues, a digital payment gateway company. Last year, it also divested its non-core businesses including online e-commerce market place, product retail, and platform solutions for SMEs, to focus on digital payments space.
According to the company, the democratisation of Indian digital payment ecosystem had further boosted its revenue, as numbers of digital transactions are increasing exponentially.
As per the company, Infibeam’s digital payment operational performance during the Q2 grew by 12% on a YoY basis, as its volume of transactions processed stood at Rs 14,560 crore.
Infibeam also attributed its growth to an increasing number of merchants base in the international market, as it expands its payment and platform business in the MENA region (Arab countries).
“During the quarter we have taken initiatives to grow our digital payment and enterprise software platform in India and international markets while focusing on delivering robust operational performance. We have made strategic alliances and launched our payments platform in Saudi Arabia and plan to further expand in other international markets,” said Vishal Mehta, Managing Director at Infibeam Avenues.
The government’s e-Marketplace (GeM), an end-to-end online marketplace for procurement of products & services for Central & State government and PSU’s also witnessed tremendous growth in the volume of transactions. As per the last year’s annual report, GeM clocked over Rs 17,300 crore.
Infibeam Avenues is a key technology partner for the GeM platform and earns a commission on the number of financial transactions that take place on GeM. “We earn on the value of each transaction on the GeM platform; higher the procurement value, higher the earnings for the company” said Mehta.
As per the estimate from India’s Commerce & Industry Minister, “GeM will be doing transactions worth $25 billion in three years and $100 billion in seven to eight years”.
According to Infibeam’s statement, GeM annual procurement grew three-fold to Rs 17300 crore in FY19 on account of increase number of registration of government buyers and added many products and services on the platform. In the first half of FY20, the government has already procured goods and services worth Rs 12000 crore.
Till Q2 FY19-20, over 2,92,000 sellers and service providers are on the GeM platform. There are nearly 1.4 million products, about 2,250 startups are on board and more than 56,000 SME sellers & service providers have joined GeM.