Infibeam Avenues shares rose 10 per cent to Rs 37.90 apiece in today’s (Monday) intraday trade after the company announced an investment of $10 million for the acquisition of a 20 per cent strategic stake in XDuce, a renowned enterprise application and AI development company based in the United States.
Founded in 2006, XDuce is a leading enterprise app and AI development company that specialises in building innovative AI solutions for businesses looking to optimise their internal operations and customer-facing systems for diverse industry verticals.
The acquisition will be completed within 90 days subject to necessary approvals for cash not exceeding $10 millions.
The board also approved to incorporate a wholly owned subsidiary in IFSC, GIFT CITY, Gandhinagar. The proposed company would be in the business of payment services as a Payment Service Provider (PSP).
It also approved to divest 85,000 equity shares in Fable Fintech Private Limited, which would cease to be an associate of the company.
The sale/disposal transaction is expected to get completed within 45 days for Rs 15.30 crore.
By joining forces, Infibeam Avenues will gain the strategic advantage of tapping into this illustrious network for its Phronetic AI Solutions and CCAvenue Payments business in the US, Infibeam said in an exchange filing on Saturday (February 24).
“On Saturday, the board of directors approved the equity acquisition in XDuce. It’s a strategic move to integrate Infibeam Avenues PhroneticAI capabilities into XDuce’s existing framework as well as support platform and payments business growth in the US market.”
“This integration is aimed at enhancing the intelligence quotient of XDuce’s solutions, especially by embedding PhroneticAI fraud detection and authentication and risk identification (FAR) AI technology for the financial sector in the US,” the company said.
Moreover, the company stated that XDuce will bolster the expansion of its payment gateway brand, CCAvenue, in the United States, solidifying its presence in the highly lucrative financial sector.
This strategic initiative is expected to redefine the course of Infibeam’s international operations as the company endeavors to increase the contribution of its international business to overall revenue within the next two years.
“Last year, the international business contributed less than 10% to Infibeam Avenues’ total revenue, and we plan to grow the international business to 30% of total revenue in the next couple of years. This strategic investment in XDuce will support the growth of the CCAvenue payments business as well as our platform business in the US,” said Mr Vishwas Patel, Joint Managing Director, Infibeam Avenues.
The company recorded a 15.7 per cent jump in the December quarter net profit at Rs 41.44 crore.
In December, the company announced a foray in the capital markets and digital lending software market by acquiring a 49 per cent stake in Pirimid Fintech.
Infibeam Avenues offers digital payment solutions and enterprise software platforms to businesses and governments across industry verticals. Its payment infrastructure solution includes acquiring and issuing solutions and offering infrastructure for banks.
The share touched a 52-week high of Rs 40 on February 2, 2024 and a 52-week low of Rs 12.85 on March 28, 2023. The stock is trading 10.35 per cent below its 52-week high and 179.07 per cent above its 52-week low.
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