Infibeam Avenues Witnesses 10% Surge in Shares Following Acquisition of 20% Stake in XDuce, a US-Based Tech Firm

Infibeam Avenues, an Indian fintech giant, experienced a notable 10% increase in its shares after acquiring a 20% stake in XDuce, headquartered in New Jersey, USA. XDuce boasts a team of over 150 software developers, serving prestigious clients on Wall Street and in the insurance sector in North America. The company is recognized for its expertise in business application implementation, integration services, and business transformation.

XDuce’s clientele includes major players like Bank of America, Morgan Stanley, Capgemini, Deutsche Bank, and more. Infibeam Avenues sees this strategic collaboration as an opportunity to leverage XDuce’s extensive network for the growth of its Phronetic AI Solutions and CCAvenue Payments business in the US.

The board of directors at Infibeam Avenues approved the equity acquisition in XDuce, emphasizing the integration of PhroneticAI capabilities into XDuce’s framework. This move aims to enhance XDuce’s solutions, particularly in fraud detection, authentication, and risk identification (FAR) AI technology for the financial sector in the US.

Infibeam Avenues anticipates that XDuce will play a crucial role in expanding its payment gateway brand, CCAvenue, in the United States, strengthening its foothold in the lucrative financial sector. This strategic venture is poised to reshape the trajectory of Infibeam’s international operations, with a target to increase the international business’s contribution to total revenue to 30% within the next two years.

Mr. Vishwas Patel, Joint Managing Director of Infibeam Avenues, highlighted the company’s plan to elevate the international business’s contribution from less than 10% to 30% of total revenue in the next couple of years. The investment in XDuce is expected to support the growth of CCAvenue payments business and the platform business in the US.

Infibeam Avenues, the only listed bootstrapped and profitable fintech conglomerate, has seen a robust rally in its shares since September, witnessing a remarkable surge of 154% from ₹14.60 to the current trading price of ₹37. The company’s Q3FY24 performance showcased its highest-ever quarterly profit after tax (PAT) of ₹42.1 crore, reflecting a substantial 64% increase year-on-year. The stellar results were attributed to the festive season and increased adoption of the CCAvenue payment solution by merchants.

Infibeam Avenues maintains its financial guidance for FY24, with a gross revenue range of ₹3,000–3,300 crore, net revenue between ₹410–415 crore, EBITDA ranging from ₹230–235 crore, and a profit after tax in the range of ₹130–150 crore.