This technology company stock skyrocketed as RBI grants principal authorisation to operate as a payment aggregator

The stock zoomed by approximately 15 per cent today.

Shares of Infibeam Avenues Ltd opened at Rs 18.05 and hit a high of Rs 20.22, up by approximately 12 per cent. On October 27, the company got the grant of in-principle authorisation to operate as a payment aggregator from the reserve of India. The market cap of the company is Rs 5299 crore. 

Infibeam Avenues is primarily engaged in the business of software development services, maintenance, web development, payment gateway services, e-commerce and other ancillary services. It is India’s third-largest payments solutions provider (DSP) in terms of revenue and market share. The company has more than 1 million merchants across fintech platforms and a solutions portfolio. 

The company has two major segments through which they provide solutions that cover the full stack of Online Digital Payments and Enterprise Software Platforms including cloud service. 

Digital Payments comprised 78 per cent of FY21 revenues. The company's major offering services are Payment Acquiring, payment issuance and remittance. The company provides 200+ payment methods categorized into debit and credit cards, net banking, wallets, EMI, and UPI. On the issuing side, the company offers early settlements of merchant funds, prepaid cards to corporate, corporate credit cards, and lending. The payment issuance allows the company to earn higher transaction rates than in the acquiring solutions segment. The company provides both Domestic and International Remittance services. 

The software platforms comprise 22 per cent of FY21 revenues. In this segment, the company provides a scalable software platform for merchants by developing SaaS-based (software as a service) platforms. The company also offers enterprise-level customized eCommerce platforms to large enterprises for handling large sales volumes. Through these portals, the company hosts India's largest online marketplace for government procurement through the government e-marketplace portal.

Increasing Global Footprints Infibeam has a presence in five countries - India, UAE, Saudi Arabia, Oman, and the USA. Currently, Infibeam is the second-largest digital payment provider in UAE and the company has laid a target of being the number one player in UAE in the next 2 years. 

The FY23 June quarter sales of the company are Rs 418 crore. In FY22 company made a net profit of Rs 84 crore.