Enterprise fintech company Infibeam Avenues’ average daily payments processing volume fell by 30% after Mach 24, compared to the pre-lockdown period of the month. Prior to the lockdown, the company was processing payments at an annualised run rate of Rs 75,000 crore in March. Payments processing volume dipped by 20% in April, compared to March. Infibeam owns payments processing platforms including CCAvenue.
With relaxations gradually kicking in in May, average daily payments processing value grew 32% with 14% growth in volume, compared to April. The company expects usage to return to normal soon and start growing, with further relaxations announced from June 2020. Infibeam’s payments business recorded a volume of 147 million in Q4FY20, up 28% YoY. The company said it saw a record volume of 40 million in Q4FY20, up 39% YoY. Merchant addition on the company’s payments platform remained “unaffected even during the lockdown through end of March, April and May, which will potentially result in growth once the economy gradually re-opens”, it said.
Bill payments on BBPS increased: Bill payments on its platforms amid the lockdowns however, saw an uptick. Monthly volume of bill payments made on NPCI’s Bharat BillPay (BBPS) increased from 15.8 million to 16.5 million in March and May respectively. It also said that number of billers on its platform increased from 182 in March to 216 in May. It isn’t clear what these numbers mean. Infibeam saw a “strong uptake in gas cylinder bookings” post the pandemic’s outbreak.
‘No material impact’ on platform businesses: The company said its platforms business saw double-digit revenue growth compared to the previous year, largely due to upgrades and additional requirements by few subscription-based enterprise clients, and increase in volumes on GeM (Government eMarketplace) portal. However, Q4FY20 revenue from platform business was impacted due to lower invoicing and collections on account of lockdown in the last few days of March 2020. It explained that its platforms business is largely made up of transactions based and predetermined contracts, with its enterprise clients, and there are a few fixed price contracts for platform subscription where it generates monthly or quarterly invoice for additional requirements and other support services on an on-going basis.
- On GeM, Infibeam earns on the value of each transaction, and claimed that “basis the reforms announced by the government, with a special focus on MSME”, it “will be able to accelerate collections which will improve its cash position”.
Infibeam acquired Cardpay Technologies: During the quarter, the company acquired Cardpay Technologies for an acquisition cost up to US$ 1.06 million to offer GRIT branded corporate credit cards. It also launched payment businesses in Saudi Arabia and the US. The company is also planning to increase its stake in Go Payments from 48% to 52.38%.
- Revenue was Rs 135.9 crore, down by 27% YoY
- Transaction processed value was Rs 16,869 crore, up 8.6% YoY
- Number of transactions processed, 40 million, up 39.3% YoY