Infibeam Avenues Limited (previously Infibeam Incorporation Limited) posted a net loss of Rs 13.9 crore in the quarter ending June (Q1 FY19). This was down a staggering 210% from the Rs 12.7 crore net profit it reported in the same quarter last year. The company made a net loss of Rs 2.2 crore in the preceding quarter Q4FY18.

The company said that the loss was primarily due to a ‘onetime charge of impairment on investments (most likely on investments Vavian and Unicommerce), provisions (this is unclear), and zero merchant charges on debit card transactions up to Rs 2,000 per government mandate where reimbursement amount is not confirmed.’

In May, the company acquired Vavian International Ltd, a Dubai-based digital payment processing company for around $1.2 million. In the same month, it also acquired Unicommerce, a “cloud-based inventory management” company.

A sharp increase in payment gateway charges at Rs 75 crores also dented the company’s bottom line. It grew a massive 48% from the preceding quarter and 82% from the corresponding quarter last year. As a result, the company’s overall expenses grew 56% on year to Rs 106.6 crores.

The firm’s revenue, however, only grew 27% on year to Rs 91.3 crore in the quarter ending June. This was on the back of a significant growth in transactions in both web services and payment solutions segments. Infibeam said that the value of transactions it processed grew 128% YoY to Rs 10,245 crore, and the number of successful transactions processed stood at 27 million in the quarter.

Infibeam added that its web services segment, which includes its flagship e-commerce solutions business, continued to grow on the back of scaling-up of Government of India’s e-Marketplace (GeM). It relaunched its .OOO service and made fresh tie ups with established brands across various industry verticals.

Infibeam attributed its growth in the payment solutions business to an expansion of its merchant base, nationally and internationally; launch of new products (including one which utilizes the Bharat Bill Pay System (BBPS)) and a general growth in the Indian e-commerce market.

Infibeam runs an e-commerce platform, owns the payments platform CCAvenue, and is the government’s official partner for GeM (the government e-marketplace). It also provides full online marketplace services to Amul and the Adani Group’s Fortune brand.

Other financial results

The company did not provide numbers of BuildaBazaar, a platform which provides cloud-based solutions for merchants. BuildaBazaar earns by charging a set-up cost to merchants, as well as through a monthly fee and a per-transaction commission. It’s essentially a Marketplace-as-a-Service (MaaS) model.

Registered merchants on Infibeam Web Services numbered over 500,000 as compared to about 400,000 it reported in the previous quarter. Infibeam didn’t provide the number of merchants on its platform. In Q4 2018, the company said that it had 94,109 merchants (unclear if active or only registered).

EBITDA was Rs 43.28 crore, up 143% on year due to growth in web services and value-added services from domestic and international markets

Recent Infibeam moves

  • In June, the company appointed Jason Kothari as President.
  • Last month, CCAvenue announced Intent, a UPI payments flow on its payment gateway
  • In June, the company also sought shareholder approval to raise up to Rs 2,000 crores and to apply for a Payments Bank and a Prepaid Wallet license with the RBI.
  • The company relaunched its ‘.OOO’ domain service through global registrars and made it available to users globally to buy ‘.OOO’ domains.
  • The company claims to have launched an advertisement platform through which the Company will operate an affiliate network program in India.

Earnings (PDF) Press Release (PDF)