Infibeam, India’s first listed ecommerce startup, plans to merge CC Avenue with it in a deal that is expected to value the online payment gateway at about Rs 2,000 crore.
Infibeam, which already owns a 3.85% stake in CC Avenue through subsidiary NSI Infinium Global, has agreed to acquire another 7.5% stake in it by investing Rs 150 crore, it said in a stock exchange filing on Monday. The companies entered also into a memorandum of understanding on the merger.
“CC Avenue subject to regulatory approval by way of amalgamation will merge with Infibeam at the indicative valuation of Rs 2,000 crore,”
said CC Avenue chief executive Vishwas Patel.
CCAvenue is a payment aggregator company, providing payment platform. It claims to help over 1 lakh merchants accept online payments through a spectrum of payment options including six major Credit Cards, 98+ Debit Cards, Amex EzeClick, 53+ Net Banking, 48 Bank IMPS, 17 Prepaid Instruments and up to 12 Multi Bank EMI options. It will also offers UPI (Unified Payments Interface) and will soon be adding BBPS (Bharat Bill Payment System) payment facility on its platform.
On the other hand, founded in 2007 by Vishal Mehta, Sachin Dalal and Neeru Sharma, Infibeam’s business can be divided into two parts- first the ecommerce website Infibeam.com and services business BuildaBazar (BaB) that provides customisable digital solutions and other value added services to enable merchants to set up online storefronts. It had more than 66,000 merchants at the end of December 2016.
“Integration of the payment platform with logistic and warehousing, ad and domain registry along with its data centre and data analytics, the value-added services provided by Infibeam would make a full circle in providing all services under one roof,”
said Vishal Mehta, the managing director of Infibeam.
On Monday, Infibeam posted a steep jump in third-quarter net profit to Rs 12.8 crore from Rs 50 lakh a year earlier. Revenue rose 14% to Rs 102.7 crore. In the October-December period, its revenue from the service vertical rose 49% while that from products dropped 1%. Shares of the company closed 0.5% higher at Rs 1,365.50 on the BSE, where the Sensex ended nearly flat.