Payments company Suvidhaa Infoserve has acquired a 5% equity stake in e-commerce platform Infibeam.com for Rs 25 crore. A BSE regulatory filing (pdf) from Monday shows that NSI Infinium Global, a wholly-owned subsidiary of Infibeam Avenues which operates Infibeam.com, has entered into a MoU with Suvidhaa Infoserve.
The deal values Infibeam.com at Rs 500 crore. The investment will let Infibeam expand its last mile service with Suvidhaa’s 90,000 retail partners across the country. The companies plan to develop an omni-channel marketplace wherein Infibeam.com’s marketplace will be connected to Suvidhaa’s retailers.
Infibeam will divest NSI Infinium Global to Suvidhaa at a later date via the scheme of amalgamation. After the merger, Infibeam.com’s sales channels and NSI’s retail channel stores will be managed by the merged entity. Web store technology for retailers will be handled by Infibeam Avenues.
Suvidhaa is backed by Shapoorji Pallonji Mistry, who owns a minority stake in Suvidhaa. It processed payments with a gross transaction value (GTV) of Rs 10,000 crores, without specifying if this was through its existence or in the current FY. Suvidhaa was launched in 2007 in Mumbai and provides financial and payments services with 300 partners. It also helps process loans, mutual fund investments and insurance, and offers utility bill payments for electricity, gas, travel, etc.
Infibeam- Go Payments investment
Earlier this month, Infibeam picked up a 48% stake in Mumbai based Go Payments aka Instant Global Paytech Private Limited (IGPL), a payments company which offers money transfer, mobile recharges, bill payments, travel booking and BBPS, for Rs 6 crore.
Infibeam stock crash due to rumour of unsecured loans
In September, Infibeam Avenues’ shares plunged 73% after it emerged that the company had given interest-free and unsecured loans to NSI Infinium Global. It later clarified that it had indeed given the loans to NSI since inception, but they were short-term loans repayable on demand. Two months later, Jason Kothari quit Infibeam as president, after spending barely 5 months there. He is continuing as senior advisor.
Infibeam Avenues is a e-commerce and payments company, it provides SaaS product ‘BuildaBazaar’ for retailers to get them onboard online commerce and also provides a payment solution via payment gateway CCAvenue. It also operates Infibeam.com. It claims to have 500,000 merchants across e-commerce and payments, including Amul, Government of India, BookMyShow, Indigo, Taj Hotels, and GAIL, among many others.
Edit: The headline has been updated to reflect that Suvidhaa’s investment is in the subsidiary NSI and not Infibeam itself.