Gujarat-based Infibeam Avenues announced that it has agreed to acquire a 54% stake in Rediff.com, one of India’s oldest and renowned internet businesses.
Rediff.com, established in 1996 by IIM-Calcutta alumni Ajit Balakrishnan, is an Indian news, information, entertainment, and shopping website.
The acquisition is worth ₹50 crore which is a mix of equity and debt, company sources said. Rediff.com India Ltd. was incorporated in January 1996 and currently has a turnover of ₹36 crore. It attracts approximately 38 million monthly visitors and ranks among the top 1,000 highest-traffic sites globally.
Rediff has a substantial user base and data assets and ranks amongst the top 1000 sites globally in traffic with more than 55 million monthly visitors, providing valuable insights into user behaviour, preferences,
and spending patterns. Rediff.com’s user base offers fertile ground for cross-selling financial products using artificial intelligence such as loans, insurance, and investment products. RediffMONEY can use the platform to promote these services, increasing product uptake and offering customers lifetime value.
“I am delighted to pass on this iconic brand and its legacy into the capable hands of Vishal Mehta, Infibeam Avenues. I strongly believe that the new avatar of Rediff under his leadership will further strengthen the company and accelerate business growth,” said Ajit Balakrishnan, Chairman & CEO of Rediff.com.
Following the acquisition, Vishal Mehta, Chairman and Managing Director of Infibeam Avenues, said, “This transaction harnesses the synergies between Infibeam Avenues’ fintech expertise and Rediff.com’s esteemed brand legacy. We are poised to cement our position as a leader in the dynamic landscape of digital finance aggregation, cloud storage and content distribution. With this synergy, we are poised to unlock new dimensions of growth, redefining the essence of cloud and fintech engagement.”
“This majority stake signifies a pivotal step towards amplifying the company’s products and services adding that the company expects to witness double-fold revenue growth with its entry into the financial sector as an aggregator in coming quarters,” reiterated Mehta.
Infibeam plans to diversify its portfolio offering by synergizing with Rediff.com’s portfolio – enterprise email to merchants, consumer financial services and content businesses, which will open up a new revenue stream for the company. This will also enhance its footprint in the digital economy for the company, backed by its regulatory capabilities.
Infibeam has a strong in-house regulatory compliance capability due to its decades of experience operating a digital payment gateway business, CCAvenue. Infibeam has Reserve Bank of India (RBI) regulatory authorization to operate as a Payment Aggregator under the Payment Settlement Act, 2007, and a perpetual license from the RBI for its bill payment business, Bill Avenue, to operate as a Bharat Bill Payment Operation Unit (BBPOU) under Bharat Bill Payment System (BBPS).
In the international arena, the company’s international subsidiary, Infibeam Avenues Saudi Arabia became the first Indian fintech player to secure PTSP Certification from the Saudi Arabian Monetary
Authority (SAMA), allowing it to operate as a Payment Processor (PTSP) in the Kingdom of Saudi Arabia (KSA).
Infibeam Avenue also released its Q1 FY25 earnings. In the June quarter of FY25, the company reported a consolidated net profit of ₹50.4 crore, up 59% from ₹31.6 crore in Q1FY24.
Similarly, its revenue from operations rose marginally by 1.4% from ₹742.36 crore in Q1FY24 to ₹752.75 crore in Q1FY25. EBITDA also grew, reaching ₹69.8 crore in Q1 FY25 compared to ₹55.8 crore in Q1 FY24. The margin improved to 59% in the June quarter of the current year, up from 57% in the previous year.
Additionally, the TPV rose by 67% YoY, reaching ₹19,769.1 crore, during the first quarter. The increased TPV is largely due to the rising use of digital payments and also a surge in the company’s merchant base due to the increased use of digital POS products– CCAvenue TapPay amongst merchants.
