Infibeam Avenues Ltd., a listed AI-powered fintech entity, is gearing up to embark on a significant expansion in the UAE market. The Company’s UAE-based step-down subsidiary, Avenues World FZ LLC, will raise USD 25 million in a pre-IPO round by diluting up to 25% equity. Following the pre-IPO fundraising, Infibeam Avenues Ltd.'s wholly-owned subsidiary, Vavian International Ltd, will retain 75% equity stake in Avenues World FZ LLC.
The wholly-owned subsidiary company has appointed SAFA Capital as the bankers for Avenues World FZ-LLC fundraising and the term sheet for this pre-IPO round was signed with a select group of investors and the transaction is slated for completion within the next 45 days.
The Company sees the pre-IPO fundraising, valued at USD 100 million post investment value for Avenues World FZ LLC as just the start of an exciting journey. Infibeam Avenues Ltd’s which has presence across the MENA region including Saudi Arabia, the US, and Australia, coupled with an outstanding track record in digital payments over more than a decade, strong teams, and promising growth prospects, poised for further success. The Company is committed to replicating the digital payments scale-up and performance achieved in UAE across each of its international regions in the future.
Internationally, Infibeam Avenues Ltd’s wholly owned subsidiary Vavian International Ltd has 100% ownership of its digital payments subsidiaries across multiple regions. Out of these international payments subsidiaries, currently, Avenues World FZ LLC processing digital payments in the UAE market has been planned to be listed on stock exchanges in UAE, to leverage the strategically positioned subsidiary in this market. CCAvenue.ae plans to come up with the IPO within the next 8-14 months.
In the UAE market, Avenues World FZ LLC processes digital payments for more than 5,000 merchant across various industries, including marquee clients like Burj Khalifa, Emaar, Damac, Nakheel, and Trump Golf Dubai. The fund will be deployed for expanding payment brand CCAvenue.ae presence in the UAE market, through merchant acquisition and introducing innovative payment products as well as services.
Over the years, CCAvenue, the company's esteemed payment business, has established itself as a paragon of adherence to high compliance standards, earning widespread acclaim as the gold standard in the payment industry. With a proven track record of regulatory compliance within India, CCAvenue has now set its sights on expanding its reach globally. Recently, the company achieved yet another milestone by securing a coveted PTSP (Payment Technical Service Provider) certificate from SAMA (Saudi Payments), enabling it to serve as a Payment Processor in the Kingdom of Saudi Arabia (KSA). This accomplishment not only underscores Company’s unwavering commitment to regulatory integrity but also signifies its readiness to deliver seamless and secure payment solutions on a global scale.
Move to boost international revenue contribution, by expanding into high commissioned markets:
This move also aligns seamlessly with the company's overarching vision to bolster its foothold in markets witnessing a digital payment boom with high take rates (commission) on digital transactions, adding value to its international payment business. The company aims to capitalize on the higher value of transactions in these (MENA region, Australia and US) markets, resulting in elevated commission earnings per transaction.
The fundraising is part of the Company’s larger plan where it envisions increasing its international revenue contribution from its current standing at approximately less than 10% to reach up to 30% of its total revenue within the span of the next three years.
As per the Company, India will continue to remain the cornerstone of company’s revenue stream. However, strategically tapping into lucrative digital markets worldwide, offering higher commission earnings per transaction, presents an avenue for exponential revenue growth.
Notably, the Company's payment brand - CCAvenue, has solidified its position as the second-largest payment aggregator in the UAE market within the MENA region. With payment processing transactions hitting a monthly run rate of AED 1 billion, the company anticipates to continue its high double digit growth YoY. The UAE-based Avenues World FZ LLC, clocked revenues of AED 39.5 million in FY23 which is a growth of 88% YoY.
“Fundraising for the UAE market will enhance our technical and operational capabilities, increase market share, add new products & services to local merchants and thus bring more transaction volume on our payment platform,” said Mr Arun Jeevaraj, vice president of CCAvenue.ae's business and operations in UAE and Saudi Arabia.
Avenues World FZ LLC, has recently introduced a mobile QR Code payment solution via its esteemed payment gateway, CCAvenue.ae, in the UAE market. Furthermore, plans are underway to bolster its presence in the offline payments domain with the imminent launch of CCAvenue TapPay (SoftPoS) in the UAE market.
Furthermore, the Company has embarked on a proactive growth strategy centered around forging partnerships with leading financial institutions. In past, Infibeam Avenues Ltd’s subsidiaries partnered with Riyad Bank, Bank Muscat and Bank Dhofar. Now further building on its decade-long legacy of fostering strong alliances in the MENA region, the company has recently inked a partnership with SAB, a prominent Saudi Arabian bank. This partnership aims to elevate the company's payment gateway brand, CCAvenue, by scaling its digital fintech product offerings and onboarding a larger cohort of entrepreneurs and merchants in the Saudi market.
This pre-IPO round marks a crucial milestone in Infibeam Avenues' trajectory, signalling a concerted effort to diversify revenue streams. The decision underscores the company's proactive stance in navigating the dynamic contours of the fintech realm. By augmenting its resources and bolstering its subsidiaries, Infibeam Avenues Ltd positions itself at the vanguard of innovation, poised to capitalise on emerging opportunities and cement its position as a global leader in the fintech domain.