New Delhi: Fintech solutions provider Infibeam Avenues Ltd on Tuesday said its consolidated net profit grew 14 per cent to Rs 13 crore in the June quarter. The company had reported a net profit at Rs 12 crore in the year-ago period, it said in a statement.
Its gross revenue more than doubled to Rs 216 crore in the first quarter of the current fiscal compared to Rs 98 crore in the corresponding period of FY21, it said.
“We started the new fiscal year by delivering a healthy quarter. We believe in the growth of India’s digital economy and we continue to strengthen our technology advantage in improving customer experience and enabling our merchants including enterprise clients to accomplish a successful digital transformation,” Infibeam Avenues Ltd (IAL) Managing Director Vishal Mehta said.
With current transaction processing value of Rs 50,000 crore per quarter and millions of full KYC merchants on Infibeam’s platform, the Artificial Intelligence-driven lending opportunity is the future growth and margin driver for the company, he added.
The company said that with the “irreversible digitalisation” of Indian and global economies, it has planned to foray into data-driven credit/lending space.
“Infibeam’s data-driven credit/lending will be asset-light and digital-only, targeting merchants in factoring (bill discounting) business,” it added.
With the recent passing of factoring law amendments, enabling more than 9,000 non-banking financial companies to participate in the factoring (bill discounting), IAL has set its course to tap the Indian factoring market space, which is estimated to be worth USD 6 billion.
“We intend to do lending as an enabler by offering credit algorithm, credit platform, frameworks and merchant database. Infibeam’s current payment gateway infrastructure processes approximately USD 18 billion payments and its software platform enables additional USD 10 billion worth of transactions of the platform,” the company said.
If this trend continues, where people, institutions and organisations are adopting digitalisation at such a faster pace, IAL may soon be processing more than USD 100 billion transactions, it added.
Currently, there are more than three million merchants on IAL’s platform and this is expected to reach 10 million merchants, driven by mass adoption of digitalisation.
IAL is perfectly posed to capitalise on this opportunity, where it can monetise its AI-driven platform infrastructure for enabling its credit/lending business, it said.
“We stay focused on making rationale investments to power our expansion in the growth and digital transformation opportunity, while sustaining our industry-leading profitability.
“During the quarter, our digital payment processing volume registered strong growth despite lower discretionary spending due to pandemic and lower contribution from aviation, entertainment including hotel and hospitality sector,” IAL Chief Financial Officer Hiren Padhya said.
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