E-commerce and web services company Infibeam posted a net profit of Rs 21.6 crore for the September quarter (Q2FY18), growing 9.64% from Rs 19.7 crore in the preceding quarter. On a year-on-year basis, net profit was up 177% from 7.8 crore.

Profitability was primarily driven by the web services segment. The management added that it is tweaking its business model and moving to a subscription and transaction-based model where it would add earnings from its payments arm CCAvenue. “The Company’s focus is to earn revenue on every transaction executed on our platform including earning the recurring subscription income on our SaaS-based platforms,” it said.

Total revenue grew 76% to Rs 201.6 crore from Rs 114.7 crore in the same quarter last year. Total revenue stood at Rs 184.6 crore last quarter representing a growth of 9.2% sequentially.

EBITDA stood at Rs 40.4 crore in the quarter growing 90% YoY from Rs 21.3 crore.

Services segment

Infibeam’s services segment includes BuildaBazaar platform which provides cloud-based solutions for merchants. BuildaBazaar earns by charging a set-up cost to merchants, as well as through monthly fee and a per-transaction commission. Last quarter, the company said that it is aggressively growing payments in international markets as it offers higher revenue per merchants in international markets.

  • Their merchant base stood at 82,138 merchants, up 34% in the same quarter last year.
  • The segment posted revenues of Rs 122.3 crore growing 264% from Rs 33.6 crore Q2FY17.
  • EBITDA margin stood at 38%.
  • Profit for the segment stood at Rs 40.22 crore growing 81% y-o-y

Infibeam added that it has been given a contract by the Government of India to design, develop and implement the Government e-marketplace (GeM). It also signed an agreement with Adani Wilmar to develop an online e-commerce platform for its products. Adani Wilmar is a joint venture JV developed by the Adani Group and Singapore-based agri-based group Wilmar. The JV has products for rice, edible oils, soya chunks, pulses, besan, and vanaspati.

Payments and transactions 

In the first half of FY18, the company said that CCAvenue processed volumes worth around Rs 9,080 crore. In Q2FY18, CCAvenue processed transactions worth Rs 4,579 crore. Infibeam said that the number of transactions processed on the web services platform in Q2 FY18 was 26.6 million. The company estimates that it will process around $100 billion through the government’s e-marketplace. However, it did not specify a time frame for the same.

Last quarter, Infibeam entered into a deal with payment gateway business CC Avenue put in an additional Rs 150 crore, for 7.5% share in the company last quarter. This follows a deal in May last year where Infibeam put in Rs 45 crore into Avenues. The company is moving towards an acquisition. It added that CCAvenue will soon have the Bharat Bill Payments Systems (BBPS) approval which will strengthen its position in the payments for utility and services transacted from its platform.

E-commerce segment

Last quarter, CEO Vishal Mehta said that the company will be investing around Rs 37.5 crore in the e-commerce segment this year to expand to 75 cities in the country. He added that the company will be making investments primarily on the logistics side. “

  • The online shopping business posted revenues Rs 79.3 crore with a marginal decline of 2% from the same quarter last year.
  • E-commerce posted a loss of Rs 93 lakh.
  • The company had 8.05 million active customers at the end of Q2 FY18.

Download: Press release | Financials