Infibeam Avenues Q2FY22 Results: Net profit rises 53% YoY to Rs 18 cr; company plans capital raise

Infibeam Avenues Ltd (IAL) on Thursday reported a 53 per cent rise in consolidated net profit to Rs 18 crore in the September 2021 quarter.

It had posted a net profit of Rs 12 crore in the year-ago period: PTI

Infibeam Avenues Ltd (IAL) on Thursday reported a 53 per cent rise in consolidated net profit to Rs 18 crore in the September 2021 quarter.

It had posted a net profit of Rs 12 crore in the year-ago period.

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The company also plans to raise capital through a primary mode to strengthen payment offering (acquiring and issuance), international expansion, business development and tapping into inorganic opportunities in India and internationally, among other activities.

Its gross revenue more than doubled to Rs 311 crore in the quarter under review from Rs 149 crore in the year-ago period, IAL said in a regulatory filing.

The company said the digital payments sector is growing at a very fast pace, and mobile-payments-driven GMV is expected to reach USD 3 trillion by CY2026, growing at a five-year CAGR of approximately 45 per cent, as per Bernstein Research.

"The company plans to raise capital through a primary mode, and aims to bring onboard long-term strategic and financial investors to make Infibeam Avenues a globally renowned fintech company," it added.

The company will channelise the investment in strengthening payment offering, lending platform, enterprise software platform, international expansion, payment network license (upon RBI approval), business development and inorganic opportunities in India and internationally, the statement said.

R Srikanth, Global President of Finance and Investor Relations at IAL, said the company intends to raise the funds in the next few quarters.

However, he did not divulge details of the quantum of fundraising being planned.

IAL Managing Director Vishal Mehta said the company's strategy is to rapidly scale by extending its existing business to new areas of growth in digital payments, marketplace platforms and enabling lending.

"We plan to become a truly global full-stack fintech company and pride on having our roots in India. We will partner with the best investors to accelerate investments for building superior fintech platforms to take the company to the next level of growth," he added.

IAL Executive Director Vishwas Patel said the company has accelerated its payment processing through a structured process of merchant acquisition, small and large, and banking partnerships in the quarter, which has helped it to build a strong growth pipeline for the future, accelerating its journey to achieve the targeted TPV of USD 100 billion.

IAL's total TPV (transactions processed value) was up 111 per cent with annualised run-rate of USD 40 billion as against FY21 TPV of USD 19 billion.

"We are seeing strong traction in our secured lending business which has grown 3x QoQ to an annualised run-rate of USD 600 million. We will continue to expand our entire fintech portfolio through innovations and partnerships to bolster the large headroom for growth in India, as well as expand internationally, Patel said.

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