Infibeam Avenues to acquire majority stake in Rediff.com to foray into financial services as an aggregator

Indian fintech firm Infibeam Avenues Ltd has announced a definitive agreement to acquire a 54% stake in Rediff.com India Ltd.

The acquisition is internally funded and represents a strategic move for Infibeam Avenues as it aims to expand its consumer-facing digital financial services.

The acquisition aligns with Infibeam's goal to create a comprehensive ecosystem combining digital payments, cloud services, and content consumption.

Integrating services

Infibeam Avenues plans to integrate its digital payment gateway services, enterprise software platforms, and AI solutions with Rediff.com's cloud-based enterprise email storage and content distribution services.

The integration is expected to enhance user engagement and open new revenue streams by offering a unified digital platform for financial transactions and content consumption.

“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,” said Vishal Mehta, Chairman and Managing Director of Infibeam Avenues Ltd.

What does Rediff do? 

Founded in 1996 by Ajit Balakrishnan, Rediff.com is one of India's oldest and most renowned internet businesses. It provides diverse services, including news, cloud-based enterprise email storage, and collaboration platforms.

"I am delighted to pass on this iconic brand and its legacy into the capable hands of Mr. 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,” said Ajit Balakrishnan, Chairman & CEO of Rediff.com.

Infibeam's investment in Rediff.com

Infibeam Avenues has invested around Rs 50 crore in Rediff.com, split equally between equity and debt, securing a 54% shareholding. The company expects to close the deal within 90 days, subject to regulatory approvals.

The acquisition is anticipated to double Infibeam's revenue growth in the coming quarters as it enters the financial sector as an aggregator.

Infibeam reported a net profit of Rs 36.4 crore in the June quarter, up 31% from the previous year, with operational revenue at Rs 682 crore.

Infibeam Avenues plans to harness Rediff.com's organic traction among its news audiences and over 5,000 corporate email clients to amplify its business growth domestically and internationally.

The fintech firm aims to leverage RediffMoney to promote financial products, enhancing customer lifetime value.

With more than 55 million monthly visitors, Rediff.com ranks among the top 1,000 sites globally, providing valuable insights into user behaviour, preferences, and spending patterns.