Wednesday, March 29, 2023

“The Company had a solid quarterly performance attributable to all-round business development. Our focus on generating higher profitability per transaction in our payments business is starting to show results. We are constantly innovating on our offerings and building comprehensive vertical specific technology that helps merchants in each industry to overcome their operational challenges. This has given us a lead to be their preferred payments partner giving us a sustainable business that will generate greater long-term value for our business and for our shareholders,” said Mr. Vishal Mehta, Managing Director, Infibeam Avenues Ltd.

The company’s focus on generating higher profitability per transaction to improve unit economics is starting to produce results. Payments net take rate increased to 8.9 basis points (bps), up 63% YoY. The company is experiencing quarter on quarter increasing trend in NTR as sectors impacted in the pandemic and overall discretionary spends are now increasing. Also, change in payment mix from credit options like credit cards and EMIs to debit options like net banking and debit cards led to favourable net take rate. Payments through debit options are more profitable for the company and the company is a pioneer in offering a large portfolio of debit options to the merchants.

GeM portal recorded the highest quarterly GMV. As per GeM, order value on GeM procurement portal ( crossed INR 1.5 lac crore in 10 months ending 31st January 2023. Order value on GeM crossed the INR 1 lac crore milestone in eight months of FY23 while it took just two months to achieve additional INR 50,000 crore. As per GeM, the order value in FY23 is projected to touch INR 2 lac crore, 2x of FY22. Incremental GeM order values accrue more revenues to the company.

In UAE, Payments TPV and Net Revenue doubled YoY in Q3 FY23. Company’s international expansion is on track. Infibeam has commercially started operations in Saudi Arabia and will scale it from next financial year.

Infibeam increased its investment by further investing INR 16 crore in Instant Global Paytech Pvt Ltd (“Go Payments” or “Go”) thereby increasing its stake to 54.80% from 52.38% earlier.

Strong volumes and improvement in per unit pricing, consequently led to an overall improvement in operating (EBITDA) and net profitability (profit after tax) and resultant margins.

Third quarter (Q3), being seasonally strong quarter also led to record 1.1 million merchant additions. Total merchants reached 8.4 million, up 72% YoY. CCAvenue’s India Payments alone recorded 385% YoY growth in total number of merchants. Retail sector was the largest merchant contributor followed by Grocery, Travel and Ticketing, Education, IT, etc. Also, very few payment companies are currently able to onboard new merchants, Infibeam Avenues being one of them. The short supply of payment gateway providers in the market, from second half of December, versus continuing merchant demand for digital payments, also led to strong merchant (onboarding) growth, which continued in the month of January as well. This will benefit the company as it builds a long-term sustainable business cantered around providing comprehensive vertical technology solutions for merchants of each industry.