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Infibeam Avenues Ltd, India’s first listed ecommerce entity reported jump in its first quarter revenue by 27% attributing to higher transaction volume.
Leading to investment made in major domestic and international acquisitions, the company thus registered standalone loss of Rs 13.88 crore.
As per the company, in the first quarter (Q1) FY 2018-19, it continued to generate higher transaction volume on account of growth in Web-Services, which includes the core E-commerce and payment solutions business.
It registered standalone revenue of Rs 91.34 crore, an increase of 27% as compared to Rs 72.13 crore in the corresponding period of the previous year.
Infibeam attributed the Q1 revenue increase to its growth in both the E-commerce solutions and payments solution business.
Its E-commerce solutions have over 500,000 merchants on the platform, while it has processed payments worth Rs 1024.5 crore during the Q1 quarter.
Additionally, its business model and revenue shift towards a predominately transaction-based revenue model over subscription-based revenue has helped the business achieved significant scale complemented by the growth in the e-commerce industry in India.
“We have started FY19 strong footing with company gaining new levels of scale by focusing on increased transaction processing volumes” said Vishal Mehta, managing director, Infibeam Avenues Ltd.
According to him, Infibeam’s web services along with payment solutions continue to grow rapidly due to its overall Indian e-commerce market growth, expanding into international markets, such as the Middle East where there is significant scope.
However, the company also reported a standalone loss of Rs 13.88 crore for the Q1 due to onetime charge of impairment on investment, provisions and zero merchant charges on debit card transactions up to Rs 2000 per government mandate where reimbursement amount is not confirmed.
Last year, it invested heavily in acquiring three companies for its future growth.
It acquired a Middle East based company Vavian International Ltd, and two Indian company – CCAvenue, a payment gateway company and Unicommerce e-Solution Pvt Ltd, a warehouse management solution company of Snapdeal.
Infibeam decided to report its standalone results only as it may not be able to prepare accounts of newly acquired subsidiaries for preparation of consolidated financial statements within the prescribed timeline.
Thus it will now declare and submit the unaudited standalone financial results for the first three quarters of FY 2018-19.
