India-based Infibeam Avenues Limited, an established online payment solutions and enterprise software solutions developer, recently recorded the highest ever digital payment processing volume of approximately INR 159 billion (appr. $2.23 billion) during a period of significant slowdown in the nation’s economy and also amidst tough competition.
India’s digital payments industry has gone through several different regulatory reforms during the past few months that have affected the profit margins and net revenues of local Fintech firms. Infibeam’s management confirmed that the firm had a flattish growth in PAT at roughly INR 259 million ($3.63 million) during Q3 2019 and for the period ending December 31, 2019.
The firm’s web services business, consisting of online payments and the latest e-commerce technology, recorded a 50% increase in its total digital transactions, valued at an estimated INR 700 billion (appr. $10 billion) for the nine months ending in December of last year.
The firm is planning to achieve a new target of INR 180 billion ($2.52 billion) during the fourth quarter, which will be ending in March of this year. But the company’s total revenues dropped to INR 1,583 million during the quarter.
Following the investment in Go Payments (Instant Global Paytech Pvt. Ltd.) in 2019, Infibeam’s management says the firm intends to enter the card issuance business. Go Payments provides prepaid cards, including meal cards, and gift cards to private corporations and small and medium-sized enterprises (SMEs). At present, Go Payments maintains an active agent network of more than 10,000 SMEs for distribution and process payments by offering a wide range of financial services.
The firm is also preparing to make an additional investment of INR 7 crore (appr. $1 million) in the business in order to increase its stake in Go Payments from the present 48% to around 52.38%.
Vishal Mehta, managing director at Infibeam, stated:
“We will continue to invest and build cutting edge technology and innovate in digital software and payments that will improve the way merchants and customers trade and transact through digitization and democratization of Commerce.”
Infibeam has experienced significant growth, during the past quarter, in the number of merchants using its digital platforms. It reportedly has more than 1 million users.
The company is also involved in other ventures including BillAvenue and a digital payments business CCAvenue, which has been expanding its operations in the Middle East by working cooperatively with one of the region’s largest financial institutions, Riyad Bank. The two companies will provide online payments solutions to e-commerce businesses in Saudi Arabia, a market that is expected to reach $11 billion by 2022.