August 4, 2022 – India – India’s first listed and leading fintech solutions provider company, Infibeam Avenues Ltd. (“Infibeam” or “The Company” or “IAL”) (BSE: 539807; NSE: INFIBEAM), has today announced its financial results for the quarter ended June 30, 2022. The company has shown stellar growth on account of surging payment transactional volume due to the return of high demand and increased economic activities. The enormous rise in digital payment transactions is being registered from across industries like travel & tourism, aviation, hotel booking, discretionary spends, lifestyle (fashion items), retail, and more that saw relatively lower economic activity in FY 2021 and FY 2022.
Standalone Financial Highlights – Quarter Ended 30th June 2022 (INR. crores)
|Particulars||Q1 FY22-23||Q1 FY21-22||Y-o-Y|
|India Payments NTR||6.9||5.4||26%|
|Gross Revenue (GR)||378||193||95%|
|Net Revenue (NR)||64||47||37%|
|EBIDTA as % of NR||64%||60%||–|
|PAT as % of NR||36%||21%||–|
Consolidated Financial Highlights – Quarter Ended 30th June 2022 (INR. crores)
|Total Payments NTR||6.8||6.2||11%|
|Gross Revenue (GR)||418||216||93%|
|Net Revenue (NR)||74||52||41%|
|EBIDTA as % of NR||58%||54%||–|
|PAT as % of NR||31%||26%||–|
Growth in payments & eCommerce platforms:
Reflecting on the overall Q1 FY23 earnings performance, Mr Vishal Mehta, Managing Director, Infibeam Avenues Ltd, said, “The return of demand has been tremendous, and it’s ever-growing. We don’t see any demand and economic activities drop in the near future. We have registered TPV growth of 72% year-on-year across our fintech offerings in Q1 FY22-23. As per our internal data, the enormous rise in digital payment transactions was across all sectors.”
“High demand for goods & services from people, has also propelled the demand for business credit from merchants, to attain these increased demands. We have registered a 77% rise year-on-year in our merchant lending business – Express Settlement, ” says Mr. Mehta.
To address the challenge of inadequate payments acceptance infrastructure and eliminate barriers to seamless digital adoption in India, The Company launched CCAvenue mobile app, among the world’s most advanced omni-channel payment app, featuring India’s first pin-on-glass SoftPoS solution – CCAvenue TapPay. Since it is an app, the merchant can download it for free on any Android phone, and convert any Android phone into a payment terminal. Merchants can accept payments in multiple ways like QR code, link-based payments, as well as Tap-to-Pay, and more.
“We rolled out our game-changing product CCAvenue Mobile App an omni-channel payment platform with a built-in tap and pay feature that converts any NFC‐enabled Android phone into a POS terminal. With these developments and a steep increase in our Total Processed Value of INR 87,218 crore, we are looking at a stretch of healthy quarters. Fintech scenario in India and globally is at a very lucrative stage that has to be leveraged by harnessing newer technology. In the coming months, our focus will be to strengthen our growth prospects in India, expand in international markets and develop new business models/payment products,” Mr. Mehta added.
“Currently, there’s an excellent momentum shifting towards digital payments in the country. The latest RBI data reveals that 7.9 crore credit card holders spent on an average more than Rs 1,00,000 Cr in each month of Q1’23, which is record high. Digital payments in the country is growing at a rapid speed and the momentum continues in FY23. POS and eCommerce are expected to contribute equally to digital payments value in FY23. This is where we are entering the offline payments market with our SoftPoS with tap-to-pay feature, that will be a game changer,” said Mr. Vishwas Patel, Executive Director, Infibeam Avenues Ltd.
Currently, 6.4 million merchants are on Infibeam’s platform (double from last year), which increased at an average 8,000 per day in Q1’23 and could grow significantly due to the mass adoption of digitalization. This merchant base along with the transactional insights we generate from their transactions will help us to monetise on this rich data by offering financial services to merchants in the form of invoice discounting, bill discounting, working capital loans, etc.
“Increasing digital volumes will allow merchants to be a part of ‘organised or semi-organised retail’ which can be leveraged by lenders to provide credit to boost growth at the grassroot levels,” said Mr Mehta.
With additional growth drivers such as consistently converting EBITDA into free cash, almost debt free company and major capex cycle behind, Infibeam is charting a focused growth strategy for the next 3-5 years. The changing fintech scenario with rapid digitisation of transactions in India and the massive potential for further growth, introduction of 5G network and acceptance of sophisticated fintech products will provide impetus to the payment sector in the coming days.
Key Business Developments – Q1FY22-23
- Infibeam Avenues Ltd launched CCAvenue TapPay, India’s first pin-on-glass solution and World’s most advanced omni-channel payment platform with TapPay solution. The CCAvenue Mobile App with TapPay feature promises to be a game-changer in the Indian market as it will convert any NFC-enabled Android phone into a smart PoS terminal. This will enable any small business or entrepreneur in the country to accept digital payments easily, quickly and securely. Infibeam Avenues Ltd expect to capture a substantial market share of India’s Rs 27 billion PoS market.
- Infibeam Avenues Ltd forayed into Australia. Had set up a wholly-owned subsidiary (WOS) Infibeam Avenues Australia Pty Limited to tap the burgeoning Australian digital payment space and expect to garner 5% of digital payment market share in three years. As a part of the company’s long term strategy, Infibeam Avenues Ltd’s senior management official Ms Neeru Sharma, Director, Platform at Infibeam Avenues Ltd, has moved her base to Sydney. Infibeam Avenues Australia Pty Limited has been incorporated on June 06, 2022. The business focus will be in the area of online digital payments to operate as a payment processor, to provide services for Mobile Point of Sale (mPOS), Near Field Communication (NFC) and contactless card technology business in the area of online payments and non-cash transactions. The company will provide other fintech services as well.
- Infibeam Avenues Ltd appointed IISc alumni Rahul Hirve as Chief Executive Officer (CEO) of CCAvenue SoftPoS India. Rahul will be responsible for strategizing, implementing and overseeing the quick deployment of softPoS technology – CCAvenue TapPay, across India to transform the Indian POS market by aggressively scaling up CCAvenue softPoS technology and providing a simple, zero-cost & easily accessible alternative/replacement for/of the traditional costly physical POS machine that are currently dominating Indian market.