Infibeam Avenues stock skyrockets 10% on expansion into US markets with XDuce partnership

With headquarters in New Jersey, USA, XDuce has a team of over 150 software developers in the US, servicing some of the marquee Wall Street and insurance clients in North America. The company is renowned for its expertise in business application implementation, integration services, and business transformation. 

XDuce’s esteemed clientele includes industry titans such as Bank of America, Morgan Stanley, Capgemini, Hollingsworth & Vose, Deutsche Bank, BNP Paribas, Goldman Sachs, NYP, QBE, IEEE, FMCNA, and many more.

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By joining forces, Infibeam Avenues will gain the strategic advantage of tapping into this illustrious network for its Phronetic AI Solutions and CCAvenue Payments business in the US, Infibeam said in an exchange filing on Saturday (February 24). 

“On Saturday, the board of directors approved the equity acquisition in XDuce. It’s a strategic move to integrate Infibeam Avenues PhroneticAI capabilities into XDuce’s existing framework as well as support platform and payments business growth in the US market.”

“This integration is aimed at enhancing the intelligence quotient of XDuce’s solutions, especially by embedding PhroneticAI fraud detection and authentication and risk identification (FAR) AI technology for the financial sector in the US,” the company said. 

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Moreover, the company stated that XDuce will bolster the expansion of its payment gateway brand, CCAvenue, in the United States, solidifying its presence in the highly lucrative financial sector. 

This strategic initiative is expected to redefine the course of Infibeam’s international operations as the company endeavors to increase the contribution of its international business to overall revenue within the next two years.

“Last year, the international business contributed less than 10% to Infibeam Avenues’ total revenue, and we plan to grow the international business to 30% of total revenue in the next couple of years. This strategic investment in XDuce will support the growth of the CCAvenue payments business as well as our platform business in the US,” said Mr Vishwas Patel, Joint Managing Director, Infibeam Avenues. 

Robust rally

Infibeam Avenues is an Indian multinational financial technology company that offers integrated and scalable digital platforms consisting of digital payment solutions under the brand name CCAvenue and enterprise software solutions under the brand name BuildaBazaar.

The company is the only listed home-grown, bootstrapped, and profitable fintech conglomerate with a comprehensive fintech portfolio, according to the company website.

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The company’s shares began their upward rally in September last year and have since maintained this trend. During this period, the shares have surged from ₹14.60 each to the current trading price of ₹37, marking a remarkable rally of 154%.

Q3FY24 scorecard

In Q3, the company achieved its highest-ever quarterly profit after tax (PAT) of ₹42.1 crore, reflecting a substantial 64% increase compared to the net profit of ₹25.7 crore recorded in the corresponding period last year. Additionally, the company reported its highest EBITDA of ₹69 crore, marking a year-on-year growth of 45%.

The gross revenue jumped by 120% YoY in Q3, while the net revenue improved by 33% YoY, reaching ₹112.28 crore. The stellar performance, according to the company, was attributed to the synergy of the festive season and the growing adoption of the CCAvenue payment solution by merchants.

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The company maintains its financial guidance for FY24, maintaining a range of ₹3,000–3,300 crore for gross revenue, ₹410–415 crore for net revenue, ₹230–235 crore for EBITDA, and ₹130–150 crore for profit after tax.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.

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Published: 26 Feb 2024, 11:20 AM IST