AvenuesAI Limited

Infibeam Avenues reported robust financial results for Q3 FY25, with gross revenue growing 18% year-over-year to ₹1,070 crores. Net revenues saw an even stronger increase of 28% year-over-year, reaching ₹140 crores. This performance was driven by a significant improvement in the net take rate, which rose 32% year-over-year from 8.4 basis points to 11.1 basis points. The company also demonstrated strong profitability, with EBITDA increasing 15% to ₹78 crores and PAT growing 22% to ₹54 crores, maintaining an EBITDA margin of 56% on net revenue.

A significant milestone in Q3 FY25 was the strategic evolution beyond B2B payments, deepening the company's presence in consumer payments and financial services through the acquisition of a controlling stake in Rediff. With over 65 million monthly visitors, Rediff provides direct access to a vast consumer base, enabling cross-selling of financial products. The company has applied for a TPAP license under the RediffPay brand to offer UPI services and anticipates Rediff contributing 2% to 4% of its revenue, with potential to grow to 10% in coming years.

Infibeam Avenues launched the CCAvenue SoundBox Max, an offline POS device approved by key card networks, capable of accepting credit cards, debit cards, UPI, and offering dynamic QR code generation. This device is designed to enhance operational efficiency for merchants and is being rolled out across a wide network. Additionally, the company successfully integrated with Bassein Catholic Co-Operative Bank, expanding its payment network and offering BCCB's Internet banking facility to millions of merchants on its platform.

The company is making significant strides in AI, establishing a new subsidiary for Phronetic AI (Nueromind) focused on pioneering innovation, including video LLM and Agentic AI. These AI-driven solutions are expected to contribute 5% to 10% of net revenue within 2 to 3 years. To support this, Infibeam is investing in data center infrastructure under the 'Quantum Edge' brand, starting with a 2-megawatt facility and planning to scale to 10 megawatts. This decentralized model aims to improve real-time data analytics and user experiences while ensuring data localization compliance.

Infibeam Avenues continues its aggressive international expansion, particularly in the UAE and Saudi Arabia. In the UAE, new payment options like Tamara BNPL and Google Pay have been introduced, and the company has onboarded several renowned names across key sectors. In Saudi Arabia, payment processing is now live for VFS, Nissan, and Infiniti, with the company aggressively investing to capture a significant share of the digital payments market, leveraging its SAMA license and local data deployment. The company aims for international operations to account for 20% to 25% of overall revenue in the next two years.

Management emphasized a commitment to sustainable, profitable growth, driven by operational efficiencies and margin improvement. While EBITDA margins saw some compression due to strategic investments in customer acquisition, AI, and Rediff integration, these are viewed as forward investments for long-term expansion. The company is focused on cash flows and building a robust ecosystem, rather than solely optimizing for short-term PAT, to ensure a larger enterprise in the future.