Infibeam Avenues witnessed a remarkable 8% surge on March 5th, following the announcement of receiving the final authorization from the Reserve Bank of India (RBI) to operate as a payment aggregator under the Payment Settlements Act, 2007 for CCAvenue, its AI-powered fintech division.
Back in October 2022, Infibeam Avenues had obtained the in-principle approval from the RBI to function as a Payment Aggregator (PA). Now, with the grant of the final Payment Aggregator license, the company’s shares soared, trading at Rs 36.95 on the National Stock Exchange (NSE) by 10:57 am.
Over the past six months alone, Infibeam Avenues’ stock has surged by an impressive 145%, outpacing the benchmark Nifty 50 index which rose by 14% during the same period.
The introduction of the payment aggregator framework by the central bank in March 2020 mandates payment gateways to acquire an aggregator license for facilitating digital payment acceptance solutions and acquiring merchants.
Infibeam Avenues currently boasts a platform with over 10 million merchants, with over 5 million merchants onboarded in the first half of FY24. This substantial growth is attributed to the company’s strong relationships with bank partners and merchants. Furthermore, the company recently secured RBI approval to operate as an Operating Unit under the Bharat Bill Pay license.
In addition to these developments, Infibeam’s board approved the acquisition of a 20% stake in XDuce Corporation, a prominent US-based enterprise app and AI development company. This acquisition aims to enhance Infibeam’s capabilities in providing innovative AI solutions across various industry verticals.
Moreover, the board sanctioned the incorporation of a wholly owned subsidiary in IFSC, GIFT CITY, Gandhinagar, which will specialize in payment services as a Payment Service Provider (PSP). Additionally, the board approved the divestment of 85,000 equity shares in Fable Fintech Private Limited, leading to its disassociation from the company.
Overall, these strategic moves highlight Infibeam Avenues’ commitment to expanding its foothold in the fintech sector and enhancing its offerings to cater to evolving market demands.
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