Distributed e-commerce market platform provider Infibeam will soon offer digital payment gateway services as the company has joined into a contract with 15-year-old digital payment player CCAvenue for a merging into the former.
Infibeam finalized an agreement with Avenues India Private Limited (which runs CCAvenue) to get 150 crore to obtain 7.5 % share, in addition to the current 3.85 %, which the former had grabbed in July 2016 for around 50 crore through Infibeam subsidiary NSI Infinium Global Pvt Ltd.
Infibeam’s newest investment is financed partially through inner accruals and value debt. After the stake buys, the board of directors of Infibeam has given its nod for following a combination of CCAvenue into Infibeam by the issuance of fresh stocks, subject to due diligence and regulating mortgage approvals.
Infibeam and CCAvenue have declared merging to create an incorporated fintech and e-commerce system.
As part of the suggested deal, post-merger, the investors of the CC Avenue will be released stocks of the Infibeam based on the assessment review and the following decided share exchange ratio.
In an income business call, Infibeam founder and CEO Vishal Mehta described that it links straight with e-commerce: “rather than delivering money to your friends and family in India for going to buy services and products, it can be used directly”…”the second opportunity is also to be able to catch the of share of wallet whoever is the recipient”. The Market Capitalisation of Infibeam has continuously expanded to Rs. 6,100 crores applying a growth of 160% over a period of 15 months since listing in Apr 2016.