Shares of this firm surge after RBI grants primary authorisation to operate as a payment aggregator

Shares of this firm surge after RBI grants primary authorisation to operate as a payment aggregator

Indian Market
by 5paisa Research Team Last Updated: 2022-10-31T12:25:12+05:30

Today, the stock price of Infibeam Avenues Ltd increased by roughly 15%.

The company's shares began at Rs 18.05 and closed at Rs 20.22, up almost 12%. The Reserve Bank of India granted the business in principle permission to operate as a payment aggregator on October 27. The company's market capitalisation is Rs 5299 crore.

Infibeam Avenues specialises in software development, maintenance, web development, payment gateway services, e-commerce, and other auxiliary services. In terms of revenue and market share, it is India's third-largest payments solutions provider (DSP). Across its financial platforms and solutions portfolio, the business has over 1 million merchants.

The company operates in two key divisions, providing solutions that span the whole stack of Online Digital Payments and Enterprise Software Platforms, including cloud service.

Digital Payments accounted for 78% of FY21 revenue. Payment Acquiring, Payment Issuance, and Remittance are the most common services provided by companies. The firm offers over 200 payment options, including debit and credit cards, online banking, wallets, EMI, and UPI. On the issuing side, the firm provides merchant fund early settlements, corporate prepaid cards, corporate credit cards, and financing. Payment issuing enables the organisation to earn larger transaction rates than in the area of acquiring solutions. Domestic and international remittance services are offered by the firm.

The Software Platforms account for 22% of FY21 revenue. In this section, the firm develops SaaS-based (software as a service) systems to offer merchants a scalable software platform. Large organisations may also benefit from the company's enterprise-level bespoke eCommerce systems for managing high sales volumes. The firm provides India's biggest online marketplace for government procurement via numerous websites, including the government e-marketplace portal.

Growing Global Footprints Infibeam has a presence in five countries: India, the United Arab Emirates, Saudi Arabia, Oman, and the United States. Infibeam is now the second-largest digital payment provider in the UAE, and the business has set a goal of being the number one player in the UAE over the next two years.

The company's FY23 June quarter revenues are Rs 418 crore. The firm had a net profit of Rs 84 crore in FY22.

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