Infibeam Avenues expects lending activities to fuel future growth


Digital payment solutions player Infibeam Avenues Limited (IAL) expects the next big growth spurt to come from its lending business. The company’s express settlement activity – short-term working capital funding – is expected to exceed $ 1 billion by year-end, far more than previous forecast of $ 200 million, it said. a senior official.

The company offers a fully secured loan to merchants against consumer payments already received on the escrow account. “We started from zero in September 2020 and reached $ 100 million in March 2021. For fiscal year 2022, we had set a target of reaching $ 200 million. But already, we have reached $ 600 million so far and plan to cross $ 1 billion this fiscal year. The lending business is the next growth platform for the business, both in terms of revenue and bottom line, ”said R Srikanth, Global President – Finance and Investor Relations – Infibeam Avenues.

In its “express settlement” business, IAL settles merchant funds instantly instead of T + 2 or T + 3 by charging a small surcharge. This benefits large e-commerce customers who conduct large transactions online on a daily basis. A delay of two, three, or seven days in getting the transaction cleared would lock up working capital for them. IAL came up with an instant settlement or loan deal, with almost zero cost of funds to the company as it uses its own funds for the deal.

The company sees that this improves net take rates and margins. Express Settlement represents 6 to 7 percent of the Gross Transaction Value (GTV) of its daily payments. He expects him to achieve 30% GTV in the next 2-3 years. “In addition to our payment processing vertical, we will be focusing on providing loan services to our existing clients in terms of secured loans to begin with,” he said.

Targeting $ 100 billion of POS

Srikanth further indicated that this would play a major role in realizing the company’s ambitions of reaching $ 100 billion in transaction processing (TPV) value compared to the current annualized TPV execution rate of 40. billions of dollars. The share of digital payments is growing significantly compared to the platform industry.

In addition, the opening of leisure, hotel, restaurant and travel businesses would further fuel transactions and therefore the company’s income. “Last year we were making 300 crore per day of POS, today on a consolidated basis we are making 800 crore per day of POS,” said Srikanth. The company currently works with around 3 million traders as it has added around 6,000,000 traders in the past year.

For the second quarter of the current fiscal year, the company posted consolidated net income of 61 crore yen, up 10% from 56 crore yen in the corresponding quarter last year. Consolidated net profit was 18 crore yen, up 53% from 12 crore yen in the same quarter last year.

Shares of Infibeam Avenues ended in the red at 45.30, down 0.55% from BSE on Friday.


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