Infibeam

Infibeam Incorporation Limited has reported that sales in the software and ecommerce related ancillary services segment posted profits of Rs 57.04 crore for the financial year ended March 31, 2016 (FY16), up 42.5% from Rs 40.01 crore in FY15. While sale of products posted losses of Rs 19.51 crore for FY16, as compared to losses of Rs 23.11 crore in the previous year. The software and ancillary services segment’s improved performance propelled Infibeam to report a net profit (profit after tax) of Rs 9.25 crore for FY16, as compared to a loss of Rs 10.11 crore in FY15.

Note that Infibeam Incorporation subsidiary NSI Infinium Global Private Limited operates the ecommerce marketplace Infibeam.com and the DIY ecommerce platform BuildaBazaar.ooo.

Ecommerce (sale of products), which means Infibeam.com, posted revenues of Rs 234.11 crore for FY16, up 5.7% from Rs 221.41 crore for FY15. Whereas, ecommerce (sale of software and ecommerce related ancillary services), or BuildaBazaar.ooo, reported revenues of Rs 102.83 crore for FY16, up 53.9% from Rs 66.79 crore for FY15. Sale of products accounted for 69.5% of the total revenue for FY16, while sale of software and ancillary services accounted for the remaining 30.5%.

Infibeam reported total revenue of Rs 336.95 crore for FY16, up 16.91% from Rs 288.20 crore in the previous financial year.

Other highlights

– The company claimed it had 53,633 registered merchants on the BuildaBazaar platform, as of March 31, 2016, and that it grew 60% year-on-year.

– BuildaBazaar earns by charging a set-up cost to merchants, as well as through monthly fee and a per-transaction commission.

– The company claimed that it has over 5000 registered merchants who sell directly on Infibeam.com. It also claimed to have over 8.17 million active users (not clear if it’s monthly active users or annual) on the ecommerce marketplace, as of March 31, 2016.

– The company also mentioned that they currently have 6 warehouses and 12 logistics centres across 11 cities in India, which they plan to expand to additional 75 centres over the next 3 years.

Quarterly results

For the quarter ended March 31, 2016 (Q4 FY16), the company posted unaudited results. It reported revenues of Rs 75.56 crore for the quarter, and net profit of Rs 1.95 crore.

The sale of products segment posted revenues of Rs 48.18 crore for the quarter, while the sale of software and ancillary services segment reported revenues of Rs 27.37 crore for the same period. Sale of products reported losses of Rs 7.53 crore for Q4 FY16, whereas sale of software and ancillary services posted profits of Rs 15.18 crore for the quarter.

IPO funds expenditure plans

– Infibeam Corporation has paid Rs 4 crore from the IPO money as advance to purchase a 0.46 million square feet property in GIFT City, Gujarat.

– They’ll also be setting up a cloud-based data centre, the equipment for which will be purchased within the current financial year.

– Rs 3.75 crore will be spent for expanding the company’s logistics footprint, as mentioned earlier.

Note that in April this year, when Next Orbit Ventures invested Rs 115 crore in Infibeam, as part of its IPO, and picked up around 5% stake, Infibeam had said it will use the funds to expand its business, setup a cloud data centre, 57 additional logistics centres, purchase of software and for purchase of property.

Infibeam IPO

Infibeam’s Rs 450 crore initial public offering (IPO) was met with lukewarm interest but was fully subscribed on its third and final day, in March this year. Concerns were raised regarding Infibeam’s valuation of shares on Day 1, as the company had fixed a price band of Rs 360 to Rs 432 per share for its public offer. At the end of Day 1, Infibeam’s shares were subscribed 0.16 times with muted interest from retail individual investors and non-institutional investors. On Day 2, 63% of shares were subscribed, with bids for 7.9 million shares of the total issue size of 12.5 million shares.

Investment in CCAvenue

Infibeam has invested Rs 45 crore in payment gateway CCAvenue. In a BSE notification, Infibeam said that it’s wholly owned subsidiary NSI Infinium Global Private Limited has signed a term sheet with CCAvenue parent Avenues India Private Limited. The companies are in the process of signing a definitive agreement and finalising the percentage of investment.

Download: Financial (pdf)

*Note that the headline and lede of this story has been changed to clearly reflect the effect the improved performance of Infibeam’s software and ancillary services segment had on it’s net profits.