SUMMARY
Infibeam Avenues is raising INR 700 Cr via a rights issue to invest in Infibeam Projects, Phronetic and Reddif, and pursue acquisitions in the future
Mehta said that the company’s dedicated AI division, Phronetic AI, is focussing on developing a global marketplace for AI agents
Infibeam will be investing INR 87.7 Cr in Rediff to build a customer-facing digital payments platform
Fintech company Infibeam Avenues has filed a draft letter of offer to raise INR 700 Cr via a rights issue to invest in its subsidiaries Infibeam Projects, AI arm Nueromind Technologies, and Reddif, and pursue acquisitions in the future.
When it materialises, the rights issue would mark one of the largest fundraises for Infibeam till date. While the fintech company netted slightly over $15 Mn in private funding, it raised INR 450 Cr (about $69 Mn) via its IPO in 2016.
The company’s board approved the rights issue and a proposal to shift its registered office’s domicile to GIFT City, Gandhinagar on May 9.
The filing of the letter of offer comes after Infibeam, last month, reported over 18% YoY increase in its net profit to INR 54.7 Cr in Q4 FY25. Its operating revenue zoomed 62% to INR 1,160.5 Cr. Infibeam attributed the growth in revenue to increase in online and offline payment volumes, higher MSME penetration, and “rapid” merchant onboarding.
In a post-earnings call, Infibeam MD Vishal Mehta said that the company’s board approved the rights issue to strengthen its capital base for future growth.
“To fuel our ambitious growth plans, our board has approved up to INR 700 Cr rights issue. This capital infusion will accelerate our strategic initiative, including, one, RediffPay. We are rolling out to our customer-facing digital payments platform. Second is Infibeam Quantum Edge expanding our AI and data centre infrastructure. And third is international expansion, scaling our payments infrastructure in key markets,” Mehta noted.
While the company has kept these businesses as its priorities moving forth, it is important to note that it announced divestment of its entire stake in logistics arm Infibeam Logistics Pvt Ltd in its Q4 disclosure.
Infibeam Bets Big On AI & Payments
Here’s how Infibeam plans to use the proceeds from the rights issue:
Investment In Nueromind Technologies: The company plans to utilise INR 294 Cr of the total proceeds from the rights issue to advance technology development and AI-software related work for its AI arm Phronetic AI (legal name Nueromind Technologies). Phronetic builds tailored Al software solutions, including a video intelligence platform and an advanced financial fraud detection system.
In its earnings call, Mehta said that the company’s dedicated AI division, Phronetic AI, is focussing on developing a global marketplace for AI agents. The platform is poised to connect developers, enterprises and everyday users to build, buy, sell and operate autonomous AI agents without writing a single line of code.
“We believe Agentic AI is the next major technology shift, and we are positioning ourselves at the forefront of this transformation. We are launching Infibeam Quantum Edge. Our quantum edge initiative involves deploying small-scale distributed data centres starting with a 2 MW unit. These centres will host our AI framework and support real-time computing use cases. With an expected ROI under 24 months, we already have demand visibility for upcoming locations,” Mehta said.
It is important to mention that Infibeam diluted its stake in Nueromind Technologies to 90% in February, reducing it to a subsidiary rather than a wholly owned business of the company.
The company has been bullish on AI for some time. Mehta noted that building AI-first fintech infrastructure is a whitespace that the company identified earlier and is committed to invest $100 Mn to build its AI capabilities in the coming three years.
Rediff Expansion: Infibeam is looking to pour in INR 87.7 Cr in its digital content and ecommerce marketplace Rediff to expand its digital and payments ecosystem.
Notably, Rediff received a third-party application provider (TPAP) licence from the NPCI for its digital payments platform, RediffPay, in February this year. During the earnings call, Mehta said that Rediff will roll out a “customer-facing digital payments platform”.
“This licence enables us to offer UPI services, marking our formal entry into the consumer-facing digital payment sector. RediffPay is not just about payments. It’s a gateway to the broader digital financial services ecosystem, including credit, insurance and wealth management solutions,” Mehta added.
Repayment Of Loans & Acquisitions: The company plans to utilise INR 69.8 Cr from the proceeds to repay loans subscribed for its wholly owned subsidiary Infibeam Projects Management Pvt Ltd. For the uninitiated, IPML focuses on providing fintech and software startups with pre-built infrastructure, tools and resources to accelerate their growth
The remaining funds of about INR 250 Cr will be utilised to acquire unidentified businesses for future growth, other business initiatives and general corporate purposes.
Shares of Infibeam ended today’s trading session 0.13% higher at INR 23.09 on the BSE.
Courtesy : https://inc42.com/