E-commerce marketplace and services company Infibeam reported total revenues of Rs 102.7 crore for the quarter ended December 2016 (Q3 FY17), and a net profit after of Rs 12.8 crores, and a 12% profit margin.
Its services revenues were Rs 40.2 crore, a rise of 49% from Rs 27 crore in the same quarter last year. The segment posted a profit of Rs 21.39 crore for the quarter, up 55.5% from Rs 13.75 crore in the same period last year.
The services segment includes BuildaBazaar platform which provides cloud-based solutions for merchants. Their merchant base stood at 66,109 merchants, up 4,861 (8%) from 61,248 at the end of the previous quarter. BuildaBazaar earns by charging a set-up cost to merchants, as well as through monthly fee and a per-transaction commission.
E-commerce results: impacted by removal of Cash-on-delivery
Infibeam’s e-commerce division – which sells products – reported revenues of Rs 62.5 crore, down 1% (around Rs 60 lakh) from the same quarter last year, and down 23% (around Rs 18.6 crore) from Rs 81.05 crore the previous quarter. However, the segment posted a loss of Rs 2.64 crore, an improvement from Rs 7.17 crore in the same quarter last year, and on par with Rs 2.7 crore for the quarter ended September 30th, 2016.
While the company makes no mention of demonetization, the decline was attributed to the removal of Cash on Delivery, which “led to this muted performance in Q3FY17 for most of the e-commerce retailers. Infibeam must be among the least affected company in the given scenario.”
Since then, “The business has picked up since then and in Q4FY17, the company is expected to see a normal performance in e-commerce retailing business. There has been a shift noticed in consumer’s behaviour as consumers have moved to cashless payment methods using the digital payment instruments.”
Infibeam also reminds us: “The bigger brands are reportedly growing with losses, however, Infibeam is careful in not burning cash while focussing on value sales.”
It also reported 8.11 Mn active users on Infibeam.com.
– Avenues acquisition: Infibeam entered into a MoU with Avenues India to pick up 7.5% stake, and will be looking to acquire the company. Details here.
– Private Treaties: On January 24th, Infibeam’s board of directors approved the “issue of one warrant fully convertible into equity shares for an aggregate amount not exceeding Rs. 60 crores” to the Times of India Group (BCCL) “on preferential issue basis at a conversion price of Rs.1,375/- per Equity Share (including premium)”
– Sears deal: In what is a major deal, it signed a deal with Sears Holding Management Corporation (“SEARS”) to provide e-commerce platform services at Sears Marketplace. “The Company has started working on the platform and believes that it will contribute to the overall revenue significantly in subsequent quarters. Sears is a leading integrated retailer focussed on seamlessly connecting digital and physical shopping experience.”
– Sikkim government deal: Infibeam will provide a “Unique & Verified Digital Identity Platform” (“Digital Services”) on .000 global top-level domain (gTLD) with authorized and secured digital wallets for Indians residing in the State of Sikkim. As a part of this program, Infibeam to provide a platform for the creation of digital web identity for citizens residing in the State of Sikkim (“Users”) to enable access and digital storage of their own citizen-centric records. Furthermore, Users will also get benefited by way of getting a free email address for their primary use, free personal web store for commerce and revenue generation opportunity, free 10 GB cloud storage, as well as integrated Digital wallet. Infibeam will also develop dedicated tourism portal for tourists visiting the State of Sikkim from all over the world”
Download: Press release & Financials