India’s first profitable e-commerce portal Infibeam said that it’s investing Rs 45 crore in one of India’s largest payment gateway CCAvenue and is currently “in further discussion for signing of definitive agreement”. CCAvenue’s payment solutions will be deeply integrated to Infibeam e-commerce marketplace and BuildaBazaar merchant store.
Infibeam operates via its subsidiary NSI Infinium Global that holds e-commerce marketplace Infibeam.com and the do-it-yourself e-commerce platform BuildaBazaar. It’s already has a joint venture with Avenues India called Avenues Infinite that operates the e-commerce marketplace Dhamaal.com. Infibeam owns 49.9% stake in the venture while the remaining 50.01% is owned by Avenues India.
Infibeam likely to compete with other e-commerce platform in payment solution market. Where competitors like Paytm app, Amazon India-specific payment products Emvantage, flipkart money and freecharge with Snapdeal has already well established player in the market.
According to report, the e-commerce platform will be offered CCAvenue payment gateway as a value added service to merchants on BuildaBazaar, since the company says it would receive “incremental revenue by way of deep integration for customers shopping on BuildaBazaar merchant store”.
Infibeam posts Rs 1.95 Cr profit in Q4
Infibeam has posted a net profit of Rs 1.95 crore on revenues of Rs 75.6 crore in its maiden earnings results for the quarter ended March 31, 2016.
For the year ended March 31, 2016, Infibeam posted a net profit of Rs 9.24 crore as compared to a net loss of Rs 10.11 crore in the previous year. The total revenues grew to Rs 336.95 crore for the year, up 16.9% from Rs 288.2 crore in the previous year.
The company’s net profit was driven by significant profit & sales in its software services and e-commerce related ancillary services segment.
For the quarter, the software services segment posted a net profit of Rs 15.2 crore on revenues of Rs 27.4 crore and For the entire year, the software services segment posted a net profit of Rs 57.04 crore on revenues of Rs 102.83 crore.
Same as for the quarter, the e-commerce sales segment saw a net loss of Rs 7.54 crore on revenues of Rs 48.2 crore, while the e-commerce sales segment saw a net loss of Rs 19.51 crore on revenues of Rs 234.11 crore.