Infibeam Avenues Ltd, the parent of payment gateway company CCAvenue, has acquired Bengaluru-based Cardpay Technologies Pvt. Ltd, a corporate credit card issuing firm floated two months ago.
The Gujarat-based company acquired Cardpay to capitalise on the market opportunity for credit to SMEs and corporates.
The acquisition was closed at an initial cash consideration of Rs 45 lakh.
Infibeam has offered a reward incentive mechanism to the management of the target company up to $1 million based on performance parameters.
The deal is expected to provide a complete digital solution to merchants, businesses and corporations by offering payments acquiring and payments issuance solutions.
Cardpay Technologies is promoted by Manik Singla and Shenbaga Kumaran Srinivasan. Singla, who is an alumnus of Management Development Institute of Singapore, has previously worked with MatchMove and Instamojo, according to his LinkedIn profile.
The company operates a unified platform to control all its payment products under GRITS Brand.
The latest transaction marks the second acquisition by Infibeam during the coronavirus pandemic lockdown.
Founded in 2010 by former Amazon executive Vishal Mehta, Infibeam started primarily as an e-commerce firm but pivoted its business model subsequently. In March 2016, it became one of the youngest firms to list on the bourses after floating its initial public offering.
In April, Infibeam acquired US-based company AI Fintech Inc for $5000 to expand the digital payments business in the US.
In February 2017, Infibeam entered into a pact to merge CCAvenue with itself in a deal that is expected to value the payment gateway firm at Rs 2,000 crore ($298 million). In May 2018, CCAvenue merged with Infibeam.
In December 2018, the company invested Rs 6 crore in Mumbai-based digital payments tech firm Go Payments.