Infibeam Avenues Subsidiary Eyes $25 Million Pre-IPO Funding, Boosting UAE Expansion Plans

SUMMARY

Infibeam Avenues' subsidiary's pre-IPO funding round signifies a significant growth opportunity for the company. This strategic move strengthens Infibeam's foothold in the UAE's burgeoning fintech sector and positions it for a successful IPO. With a robust domestic presence, a growing merchant base, and a commitment to innovation, Infibeam Avenues appears well-equipped to capitalize on the rising demand for digital payment solutions across India and the UAE.

The coming months will be crucial in observing how effectively Infibeam leverages this fresh infusion of capital and its strategic partnerships to solidify its position as a leading player in the ever-evolving fintech landscape.

Mumbai, India – Infibeam Avenues, a leading Indian fintech company, is set to see increased investor focus today (March 27th) due to its UAE-based subsidiary, Avenues World FZ-LLC, seeking $25 million in a pre-IPO funding round. This strategic move signals Infibeam's commitment to expanding its footprint and becoming a key player in the dynamic UAE financial technology landscape.

Avenues World Gears Up for IPO

Avenues World FZ-LLC, currently a wholly-owned subsidiary of Infibeam Avenues, is raising $25 million from a select group of investors to fuel its growth and prepare for an upcoming listing in the UAE capital market. As per an exchange filing by Infibeam Avenues, Vavian International Limited, another wholly-owned subsidiary, will retain a significant majority stake exceeding 75% in Avenues World even after the pre-IPO fundraising is completed. The transaction is expected to finalize within the next 45 days.

Fintech Solutions Tailored for the UAE Market

Avenues World FZ-LLC caters to the specific needs of the UAE financial ecosystem by offering a comprehensive suite of fintech solutions. This includes multi-currency payment gateways, B2B payment solutions, integration with popular mobile wallets like PhonePe, and access to financing options for businesses.

Infibeam Avenues: A Trusted Partner for Digital Payments

Founded in 2007, Infibeam Avenues has established itself as a prominent player in India's digital payments space. The company offers a wide range of digital payment solutions and enterprise software platforms to businesses and government institutions across various sectors. Notably, Infibeam Avenues recently secured the coveted payment aggregator license from the Reserve Bank of India (RBI) for its payment gateway platform, CCAvenue.

Strong Growth Momentum

Infibeam Avenues boasts a robust merchant base, exceeding 10 million users on its platform. The company also witnessed significant growth in the first half of FY24, onboarding over 500,000 new merchants through strategic partnerships with banks and expanded marketing efforts. Additionally, Infibeam Avenues launched the innovative "CCAvenue TapPay" mobile app under its flagship brand CCAvenue. This app offers a pin-on-glass SoftPoS solution, a first-of-its-kind offering in India, empowering merchants and small businesses (kiranas) to accept digital payments seamlessly.

Financial Performance Reflects Success

Infibeam Avenues' financial performance reflects its strong market position. In the December quarter (Q3) of FY24, the company's profit after tax witnessed a remarkable 64% increase, reaching INR 42.1 crore compared to INR 25.7 crore in the same quarter of the previous year. Operating revenue also doubled during this period, rising from INR 414.7 crore to INR 912 crore.

Inflection Point for Infibeam Avenues?

The pre-IPO fundraising by Avenues World FZ-LLC, coupled with Infibeam Avenues' consistent financial performance and strategic expansion plans, paints a promising picture for the company's future. This move not only bolsters Infibeam's presence in the UAE market but also underscores its commitment to innovation and growth. As Infibeam Avenues navigates this exciting phase, investors and industry watchers will be keenly following the company's progress and its potential to become a major player in the global fintech landscape.