Payments infrastructure company Infibeam Avenues has entered into a definitive agreement for a 54.1 percent stake in Rediff India through an internally-funded cash acquisition worth Rs 25 crore. Infibeam currently offers payment gateway and software services to businesses and the acquisition will allow it to diversify its offerings and increase user engagement.
Rediff is a pioneering brand and one of India’s oldest internet businesses. This acquisition marks the beginning for Infibeam Avenues’ consumer facing digital financial service as an aggregator backed by a mainstream news, cloud based enterprise email storage, and collaboration platform, IA said in a statement.
The deal includes Rediff’s cloud-based enterprise email storage, instant messaging platform, content distribution and related commerce services for merchants and consumers. Currently, its mail service is used by over 5,000 companies, the company said in a statement. The firm is expected to provide data insights into user behaviour, preferences, and spending patterns for Infibeam to cross sell financial products.
Ajit Balakrishnan, chairman and CEO of Rediff, will continue to work in the capacity of an advisor to the firm.
Balakrishnan said, “I am delighted to pass on this iconic brand and its legacy into the capable hands of Vishal Mehta (Infibeam Avenues). I strongly believe that the new avatar of Rediff under his leadership will further strengthen the company and accelerate business growth.”
Rediff reported a turnover of Rs 36.07 crore as on March 31, 2024, which has been relatively flat with FY 23 revenue at Rs 37.25 crore and FY 22 at Rs 38.24 crore. As per the company, Rediff attracts about 38 million monthly visitors.
Infibeam Avenues said that Rediff’s user base offers fertile ground for cross-selling financial products using artificial intelligence such as loans, insurance, and investment products. “Rediff Money can use the platform to promote these services, increasing product uptake and offer customer lifetime value,” the company added.
Vishal Mehta, chairman and managing director of Infibeam Avenues, said, “This transaction harnesses the synergies between Infibeam Avenues’ fintech expertise and Rediff.com’s esteemed brand legacy. We are poised to cement our position as a leader in the dynamic landscape of digital finance aggregation, cloud storage and content distribution. With this synergy, we are poised to unlock new dimensions of growth, redefining the essence of cloud and fintech engagement.”