Infibeam Avenues (INFIBEAM): A Strong Growth Trajectory in Q2 FY24
Overview – INFIBEAM:
Infibeam Avenues Limited (INFIBEAM) has reported substantial growth in the second quarter of FY24, showcasing impressive figures across key financial metrics. The company’s focus on small merchants, international expansion, and investments in artificial intelligence (AI) positions it as a significant player in India’s digital payment landscape.
Q2 FY24 Financial Highlights:
- Gross Revenue: IAL reported a robust 66% YoY increase in gross revenue, reaching Rs 789 crore.
- EBITDA: The company’s EBITDA surged by 70% YoY to Rs 67.8 crore.
- Profit After Tax (PAT): IAL’s PAT witnessed an impressive growth of 191%, soaring to Rs 38.3 crore.
Key Drivers of Growth:
- Focus on Small Merchants: IAL’s commitment to serving small merchants is evident in the addition of an average of 2,900 merchants daily to its CCAvenue payments platform during Q2 FY24. Payments net take rate from small merchants increased by 25% YoY to 9.3 basis points.
- International Expansion: In August 2023, IAL achieved a milestone with a monthly transaction volume of AED 1 billion in the UAE. The company plans to broaden its international reach further by launching its Depay mobile SoftPOS in the UAE in Q4 FY24.
- Investments in AI: IAL is making substantial investments in AI, with the acquisition of a new building in GIFT City, Ahmedabad, for its AI research and development centre, representing a commitment of Rs 1 billion. The focus is on establishing itself as a key player in AI-based fraud detection and prevention.
Conclusion: Infibeam Avenues is well-positioned for success in India’s dynamic digital payments landscape. Its growth trajectory, driven by a focus on small merchants, international expansion, and investments in AI, reflects its strategic approach. Investors looking for a company with a strong track record, technological innovation, and global aspirations may find IAL to be an attractive prospect in the evolving digital payment ecosystem.
