Infibeam to Acquire Majority Stake in Rediff
Bengaluru, August 02, 2024: Leading AI-powered fintech company, Infibeam Avenues Ltd today announced that it has entered into a definitive agreement for a 54% stake in Rediff.com India Ltd., one of India’s oldest and most renowned internet businesses. This internally funded acquisition marks a significant milestone for Infibeam Avenues, marking the beginning of its consumer-facing digital financial service as an aggregator backed by a mainstream news, cloud-based enterprise email storage, and collaboration platform.
“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.
Rediff.com, established in 1996 by IIM-Calcutta alumni Ajit Balakrishnan, will continue to advise the Company. Balakrishnan has also served as the board Chairman at IIM-Calcutta for almost a decade.
“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,” said Vishal Mehta, Chairman and Managing Director of Infibeam Avenues Ltd.
Acquisition Synergy between IAL and Rediff.com:
Currently, Infibeam Avenues provides digital payment gateway (CCAvenue), enterprise software platforms, and AI solutions to various businesses and government entities.
Rediff.com, with its diverse services including cloud-based enterprise email storage, content distribution and related commerce services offering a broad digital platforms. Infibeam plans to synergize its various digital payment services, platform business offerings, and AI solutions with Rediff.com’s services, creating a comprehensive digital environment where financial transactions and content consumption coexist. This integration is expected to enhance user engagement and open new revenue streams.
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 offer customer lifetime value.
Infibeam plans to diversity its portfolio offering by synergizing with Rediff.com’s portfolio – enterprise email to merchants, consumer financial services and content businesses, which will open up new revenue stream for the company. This will also enhance 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).
By harnessing inherent strengths of Rediff.com, along with its organic traction among its news audiences and its dominance with 5,000+ corporate email clients, Infibeam plans to amplify its business growth across its product and service offerings in both domestic and international markets.
“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.
Recently, Rediff reported revenues of INR 360 Million in FY23-24.
