Infibeam’s Q3 profit up 25% on higher digital payments during festival season

Ahmedabad headquartered digital payments and ecommerce solutions provider Infibeam Avenues has reported a net profit of Rs 15 crore for the quarter ended December 31, 2020, marking a 25% jump from Rs 12 crore in the same quarter last year.

Its consolidated revenue grew to Rs 228 crore in Q3 from Rs 155 crore in the year-ago period, the company said in a statement.

On a quarter-on-quarter basis, Infibeam’s revenue increased 53% from Rs 149 crore and profits (excluding share of associates) grew 87% from Rs 8 crore in the second quarter of FY21.

The significant revenue growth was spearheaded by strong merchant registration in Q3, 20% above Q2 daily average. It processed payments worth Rs 27, 916 crores, an average of over Rs 9,200 crores monthly compared to Q2 daily average of Rs 8000 crores, the company said. 

Infibeam marked the highest amount of payment processing ever in a quarter, which corresponds to 23% jump quarter-on-quarter and 76% jump year-on-year. The festival quarter along with the holiday season in December contributed to the sharp increase in payment processing.

“We had the best quarter ever with 53% revenue growth, quarter on quarter, and 47% compared to the same quarter last year. Performance was strong across both our business segments i.e. digital payments and enterprise software platforms, on the back of robust growth in operating metrics,” Vishal Mehta, managing director of Infibeam said.

The company said its enterprise software platforms business grew significantly in Q3.  Government of India e-Marketplace, one of its key clients, is expected to drive growth and revenue as the government now plans to make it a unified public procurement portal for all central and state government institutions in the country as well as for railways, defence, and Central Public Sector Enterprises (CPSEs).

BillAvenue, its bill payments platform, saw volumes increase by 222% year-on-year and 31% quarter-on-quarter.

Infibeam has also entered into an agreement with Reliance Industries’ Jio Platforms Limited and its affiliates to license, customize, maintain and access enterprise e-commerce software platform and payments platform for their business use. Currently integration and testing are underway.

The company has entered Oman, its third GCC (Gulf Cooperation Council) market. It has inked a collaboration deal with Bank Muscat, Oman's largest bank, to offer high-end payment gateway services to merchants in the country. It has also launched payments business in Oman by partnering with Bank Dhofar to offer acquirer processing services.

During the quarter, Infibeam received approval from National Company Law Tribunal (NCLT) to demerge its SME ecommerce and marketplace business to Suvidhaa Infoserve almost a year after the announcement was made. Mumbai headquartered Suvidhaa Infoserve provides digital payment and omni-channel solutions to small businesses.