In a strategic move signalling its entry into the capital markets and digital lending software sector, Infibeam Avenues has successfully acquired a substantial 49% stake in Pirimid Fintech for a sum of Rs 25 crore. This partnership is poised to reshape the landscape of digital lending, capital markets solutions, and artificial intelligence (AI) in the financial technology (fintech) domain.
Pirimid Fintech, headquartered in Gujarat, specializes in providing comprehensive solutions across various financial sectors. From hedge funds and robot advisory solutions in capital markets to digital lending and account aggregation in banking, Pirimid has established itself as a key player. Moreover, their AI and machine learning (ML) proficiency through APIs and Web 3.0 has garnered collaborations with esteemed institutions like the Bank of Baroda and global entities such as LendingKart, Ariana Investment Management, and Armadillo.
Infibeam Avenues envisions leveraging its technological prowess and expertise to propel Pirimid’s development of cutting-edge digital lending solutions. The aim is to streamline lending processes, enhance customer experiences, and fortify risk management through advanced data analytics and AI algorithms. The synergy between the two companies is expected to foster more efficient credit disbursement in the rapidly evolving fintech landscape.
This acquisition places Pirimid Fintech in a notable league of companies partially or wholly owned by Infibeam Avenues or its subsidiaries. Infibeam’s subsidiaries have made strategic moves in recent months, including acquiring Sintex Corporate House and a 50% stake in Vishko22 Products & Services Pvt Ltd. Other acquisitions, such as Cardpay Technologies, Instant Global Paytech, and Uvik Technologies, underscore Infibeam’s commitment to expanding its fintech portfolio.
The financial performance of Infibeam Avenues Limited in the second quarter of FY24 demonstrates robust growth. With a consolidated gross revenue of Rs 789.9 crore and a profit after tax of Rs 38.3 crore, the company reported a 6.3% surge in scale compared to the previous quarter. This upward trajectory can be attributed to a notable increase in payments and platform total processed value (TPV).
Payments TPV witnessed a significant % YoY growth of 28%, reaching INR 769 billion (Rs 76,900 crore). Additionally, the company’s most prominent software platform implementation customer experienced a remarkable 155% growth in TPV, surpassing Rs 1 trillion in a quarter. Notably, payment net take rates exhibited a substantial 25% YoY increase to 9.3 basis points in Q2 FY24.
Infibeam Avenues Ltd’s Q2 FY24 performance also saw a historic milestone as the company achieved a net revenue of more than Rs 100 crore. This achievement was propelled by improved net margins, leading to robust growth in both EBITDA and profit after tax—70% and 191%, respectively. The noteworthy contribution of small merchants played a pivotal role in driving the surge in payment business net take rates.
As Infibeam Avenues ventures further into the fintech landscape, the acquisition of Pirimid Fintech marks a significant stride towards innovation and diversification, solidifying its position as a key player in the ever-evolving world of digital finance.
