The valuation of Rediff during the Infibeam deal was a point of interest, given its IPO plans a decade after its delisting from Nasdaq.
Infibeam Sells E-commerce Platform Infrastructure Services to Subsidiary Rediff.com India Ltd
Infibeam Avenues, a leading fintech and digital technology firm, has announced a strategic business transfer of its e-commerce platform infrastructure services business to its subsidiary, Rediff.com India Ltd. The deal, worth ₹800.39 crore, is expected to complete in approximately 60 days, subject to statutory approvals and fulfillment of conditions in the business transfer agreement (BTA).
The transaction involves ₹400 crore in cash and ₹400.39 crore in fresh equity shares of Rediff.com. As part of this deal, Infibeam's stake in Rediff will increase from 54.1% to 82.7%. This move is a strategic one for both companies, allowing Infibeam to focus on scaling its digital payment platform CCAvenue and its AI infrastructure services under Phronetic.AI, while Rediff.com will integrate the Infibeam e-commerce platform into its own ecosystem.
The combined platform aims to offer seamless integration from e-commerce storefront to payments, CRM, and analytics, enhancing user experience and SME reach. The deal is designed to bring operational focus, capital efficiency, and long-term growth potential for both companies.
It is important to note that the shareholding pattern of the listed entity Infibeam Avenues will not change due to the transaction. The sale does not involve the entirety of Infibeam's operations, as the company continues to operate its e-commerce platform.
The content that will be integrated into Rediff's platform is labeled as premium. Becoming a Premium member grants access to this content. Existing members can log in to access the content, while new members can join to gain access. The financial terms of the transaction have not been disclosed.
This strategic transfer aligns with Infibeam’s intent to focus on payments and AI, while Rediff.com is positioned to accelerate growth as a SaaS and digital commerce platform, leveraging their complementary businesses under increased Infibeam ownership.
Sources: 1. Business Standard 2. The Economic Times 3. The Times of India 4. Moneycontrol 5. Livemint
- The strategic business transfer of Infibeam Avenues' e-commerce platform infrastructure services to Rediff.com India Ltd marks a significant move in the finance and technology sectors, as it will allow Infibeam to concentrate on scaling their digital payment platform CCAvenue and AI infrastructure services.
- With Infibeam's increased ownership in Rediff.com, the combination of their e-commerce platform and Rediff's own ecosystem is expected to offer premium content to users, aiming to enhance the user experience and reach of Small and Medium Enterprises (SMEs).
