Infibeam Avenues Reports Strong Q2 Performance and Strategic Expansion

Introduction

The financial landscape in India is witnessing some remarkable success stories, and Infibeam Avenues is no exception. In the second quarter of the financial year (Q2FY24), this fintech firm posted an impressive profit after tax (PAT) of Rs 40.9 crore on a consolidated basis. This remarkable achievement reflects a significant 57% growth compared to the previous quarter, where the PAT stood at Rs 26 crore in Q1FY24. Moreover, the company’s performance in Q2FY24 surpassed its results from the second quarter of the previous financial year (Q2FY23), where it reported a PAT of Rs 40.7 crore.

Steady Income Growth

Infibeam Avenues’ financial prowess isn’t limited to profits alone. The company’s total income surged by 6.3% on a quarter-on-quarter (Q-o-Q) basis, reaching Rs 792.6 crore in Q2FY24 compared to Rs 745.1 crore in Q1FY24. On a year-on-year (Y-o-Y) basis, the company’s total income exhibited remarkable growth, rising by a substantial 55.6% from Rs 509.4 crore in Q2FY23.

Expenses and Strategic Investments

While the company’s expenses saw a modest increase of 3.8% on a Q-o-Q basis, with Q2FY24 expenses totalling Rs 737.3 crore compared to Rs 710.6 crore in Q1FY24, the Y-o-Y expenses growth was significant. Expenses rose by 63% from Rs 452 crore in Q2FY23. It’s worth noting that these expenses reflect the company’s strategic investments and operational costs, further indicating its commitment to growth.

Strategic Initiatives and AI Focus

One of the key drivers behind Infibeam Avenues’ success in Q2FY24 is the significant on boarding of merchants, particularly small businesses. This influx of merchants has resulted in a higher take rate, which has contributed to the company’s profitability. Vishwas Patel, Joint Managing Director at Infibeam Avenues, noted, “In Q2FY23-24, we witnessed an unprecedented on boarding of merchants, primarily small businesses. This influx has resulted in a higher take rate.”

Infibeam Avenues has set its sights on becoming a prominent player in the artificial intelligence (AI)-based fraud detection and prevention market. To achieve this goal, the company has established a dedicated AI vertical business unit called FAR, which stands for Fraud Detection, Authentication, and Risk Identification. Under this unit, the company is poised to develop a range of tailored AI-based products and services designed to identify payment and financial frauds across various sectors, including banking, financial services, insurance, fast-moving consumer goods, manufacturing, fintech, utilities, government, and government agencies.

In pursuit of its AI-focused expansion, Infibeam Avenues has invested Rs 100 crore in acquiring a new building, securing a plot area, and partially constructed building. This strategic move will further bolster the company’s presence in the AI landscape.

Expanding Reach with Payment Gateway CCAvenue.ae

Infibeam Avenues is also making international strides through its subsidiary, CCAvenue.ae, based in the United Arab Emirates. In October, CCAvenue.ae introduced a mobile-based QR Code payment solution for merchants in the UAE market. This move reflects the company’s commitment to expanding its footprint and offering innovative solutions beyond the Indian market.

Conclusion

Infibeam Avenues’ strong Q2 performance, coupled with its strategic investments and focus on AI-based fraud detection and prevention, showcases its commitment to growth and innovation. The company’s ability to adapt to the evolving financial landscape positions it as a noteworthy player in the fintech industry.

As the company continues to set ambitious goals and expand its horizons, it will be interesting to watch how it further shapes the financial technology landscape, both in India and beyond.