Infibeam Avenues Limited Announces Consolidated Financial Results for Quarter Ending June 2021

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Infibeam Avenues Limited Announces Consolidated Financial Results for Quarter Ending June 2021

Infibeam Avenues Limited Announces Consolidated Financial Results for Quarter Ending June 2021.Leading global Financial Technology (Fintech) solutions provider Infibeam Avenues Limited (“Infibeam” or “The Company” or “IAL”) (BSE:  539807; NSE: INFIBEAM), today announced its consolidated financial results for the quarter  ended June 30, 2021.

With the irreversible digitalization of Indian and global economies, Infibeam Avenues has  planned to foray into data-driven credit/lending space. Infibeam’s data-driven  credit/lending will be asset-light and digital-only, targeting merchants in factoring (bill  discounting) business.  

With the recent passing of factoring law amendments, enabling more than 9,000 non banking financial companies (NBFCs) to participate in the factoring (bill discounting),  Infibeam Avenues has set its course to tap the Indian factoring market space, which is  estimated to be worth $6 billion.  

We intend to do lending as an enabler by offering credit algorithm, credit platform, frameworks and merchant database  

Infibeam’s current payment gateway infrastructure process approximately $18 billion  payments and its software platform enables additional $10 billion worth of transactions of  the platform. If this trend continues, where people, institutions and organizations are  adopting digitalization at such a faster pace, Infibeam Avenues may soon be  processing more than $100 billion transactions.

Currently, more than 3 million merchants are on Infibeam’s platform, which is expected to  reach 10 million merchants as it grows in leaps & bounds almost every month due to the  mass adoption of digitalization.  

Infibeam Avenues is perfectly posed to capitalise this opportunity, where it can monetize its  Artificial Intelligence (AI)-driven platform infrastructure for enabling its credit/lending  business.  

“We started the new fiscal year by delivering a healthy quarter. We believe in the growth of  India’s digital economy and we continue to strengthen our technology advantage in  improving customer experience and enabling our merchants including enterprise clients to  accomplish a successful digital transformation. With current transaction processing value of  Rs 50,000 crore per quarter and millions of full KYC merchants on our platform, the AI driven  lending opportunity is the future growth and margin driver for IAL”. said Mr. Vishal Mehta,  Managing Director, Infibeam Avenues Limited.  

We stay focused on making rationale investments to power our expansion in the growth  and digital transformation opportunity, while sustaining our industry-leading profitability.  During the quarter our digital payment processing volume registered strong growth despite  lower discretionary spending due to pandemic and lower contribution from aviation,  entertainment including hotel and hospitality sector “said Mr Hiren Padhya, Chief Financial  Officer. 

Operational Highlights – 1QFY22 

Digital Payment Business  

CCAvenue Payment Gateway Solution 

∙ TPV up 134% YoY and averaging INR 10,000 crore monthly from <INR 5,000 crore  YoY 

∙ CPGS integrated with Bank Muscat, Bank Dhofar and Jio, to go commercially live  soon 

∙ Plan to roll out CPGS solution globally  

∙ Plan to launch a soft POS for offline retail for customers to just tap and pay cards on  merchant’s mobile phone 

Express Settlement  

∙ Started Express Settlement a fully secured lending to the merchant in Sep’20 ∙ Settled US$50 million worth of merchant funds in Q1 

∙ Currently our daily average express settlement is INR 6 crore, 2x compared to  Mar’21 

∙ Guidance given for FY22 to process US$ 200 mn intact 

Neo Banking Solution ∙ Entered into Neo Banking services through the credit tech platform GRIT, IAL’s step down subsidiary. Grit will enable SMEs and corporates with digital banking services,  cards, bill payments, lending and more.

Domestic & International Remittances Solution  

∙ Digital payments portfolio to offer, domestic remittance services, and assisted commerce including cash collection services thru IAL’s subsidiary Go Payments for  underserved, underbanked and unbanked across India targeting 75% of Indian  population through our growing merchant network. 

∙ Participated in series A round of our cross-border payment platform investee  company Fable Fintech Company, erstwhile RemitGuru. 9 of the top 10 Indian  private banks use this platform. 

New Umbrella Entity – NUE 

∙ Applied for a retail payment license from RBI along with consortium partners Jio  Platforms, Google and Facebook to offer payments globally. 

Enterprise Ecommerce Software and SaaS Platform  

Bill Payment Platform Business – BillAvenue 

∙ Bill Payments volume grew 479% YoY to 16mn  

∙ Gross margins in Q1 has improved 3 times compared to same quarter last year ∙ Agent network increased to over 725,000 across India, up from 600,000 last year 

Enterprise & Government Ecommerce Platform  

∙ Achieved highest ever TPV on GeM in Q1 of US$ 2.5 billion, up 344% YoY. ∙ Annualised run-rate of US$10 bn for FY22; 2x compared to FY21 

Key Business Development – 1QFY22 

Investment in Avenues Payments India Private Limited (“RemitGuru”) 

During the quarter, pursuant to Regulation 30 of the SEBI (Listing Obligations and  Disclosure Requirements) Regulations, 2015, the Board has approved to make  further investment in Avenues Payments India Private Limited (“RemitGuru”). This  will further enable the Company to increasing the cross-border E-commerce Business  transactions and making the remittance business cash free through fin-tech  solutions. Participated in Series A round of investee company, RemitGuru (now Fable  Fintech).

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