Rediff's worth in the Infibeam deal is under scrutiny as the company prepares for an IPO, a decade after being delisted from Nasdaq.
Infibeam Avenues Sells E-commerce Platform Infrastructure Services to Rediff.com India Ltd
In a move to streamline operations and focus on core competencies, Infibeam Avenues, a listed fintech and digital technology firm, has agreed to sell its Ecommerce Platform Infrastructure Services business to Rediff.com India Ltd. The transaction, classified as a "strategic business transfer," was announced in a statement by Infibeam Avenues and is expected to close in August 2025.
Under the terms of the slump sale agreement, Infibeam Avenues will transfer its platform business assets, liabilities, intellectual property, talent, and contracts to Rediff.com India Ltd for INR 800.39 crore. The consideration for the deal is split, with half paid in cash (INR 400 crore) and the remaining half via the issuance of fresh equity shares in Rediff, amounting to INR 400.39 crore.
Post-transaction, Infibeam's stake in Rediff will increase to approximately 82-82.7%, subject to shareholder approval. The deal is outside any Scheme of Arrangement but will comply with all applicable laws, including shareholder voting through postal ballot or general meeting.
Infibeam Avenues will double down on its core strengths in digital payments through its CCAvenue platform and artificial intelligence innovation via Phronetic.AI. This move allows the company to focus better on fintech and AI-driven product development.
Rediff.com India Ltd, on the other hand, aims to scale its enterprise software and ecommerce offerings by leveraging the acquired platform infrastructure. The company is also considering capital raising initiatives, including an IPO, to accelerate growth.
The strategic transfer enables focused business segmentation, allowing each entity to concentrate on its core competencies. Infibeam will focus on fintech and AI, while Rediff will focus on ecommerce and enterprise software. The sale does not include Infibeam's digital payment services, lending, or enterprise software business.
This noteworthy sale involves a listed fintech and digital technology firm and is a significant step towards optimizing resource allocation and strengthening both companies' market positions by clearly delineating business lines.
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