Infibeam Avenues, which operates payment gateway firm CCAvenue, has acquired Cardpay Technologies for $1.06 million.
Cardpay provides a unified spend management platform to corporates under the brand name GRIT with physical and virtual credit cards, invoice processing and early payment discounting, according to a statement.
The deal’s initial cash consideration is pegged at about $60,000, while there will be a reward incentive mechanism for the management at Cardpay of up to $1 million on the basis of the company’s performance, the company’s regulatory filings said.
BSE and NSE listed company Infibeam Avenues said that the acquisition will let it capitalise on the market opportunity for credit to small and mid-size enterprises and corporates and offer digital payment.
Bengaluru-based Cardpay Technologies was floated in March 2020.
Infibeam Avenues on Friday also reported a 54% decrease in quarterly operational revenue, on a consolidated basis. Net profit tanked by 64% to Rs 27.4 crore, year over year.
The company said its operational revenue fell to Rs 135.9 crore in the third quarter ended March 2020, from Rs 297.8 crore, a year earlier.
The Ahmedabad-headquartered company had announced a demerger of its ecommerce service and other businesses, in September 2019.
On a standalone basis, the company said its net profit fell to Rs 7.4 crore from Rs 30.7 crore, a year earlier. Operating revenue also fell 26% to Rs 123.2 crore.
Infibeam Avenues is, however, in no mood to pace its expansion plans.
Two years after entering the middle east market, Infibeam Avenues expanded its digital payments business to the United States market in February 2020.
Domestically, the online payments gateway is a competitive market with major players like payment gateways CCAvenue, PayU, Billdesk and new-age player Razorpay.
CCAvenue’s clientele in India includes Indigo Airlines, MakeMyTrip, Myntra, Snapdeal amongst others. In the United Arab Emirates, it caters to At The Top (the observation deck at Burj Khalifa), Emaar Properties, HTC Mobiles, Manipal University, and Axiom Telecom.