e-Commerce firm Infibeam on Friday said it will acquire the control of payment gateway provider CCAvenue by acquiring a 7.5 percent stake for ₹150 crores. Infibeam will also buy an additional 3.85 percent stake from NSI Infinium Global for ₹60 crores which is a fully owned subsidiary of Infibeam.
“With this, the investment made by NSI in CCAvenue would be entirely liquidated,” the company said in a release. “In this regard, the company has informed the exchanges that it has signed a binding addendum to the memorandum of understanding and made payment of Rs 150 crore to acquire 7.50% equity stake with control of CCAvenue,” the release said.
As of March 2016, CCAvenue witnessed a total turnover of ₹108 crores. Last year, the revenue recorded was half in comparison to 2016, accounting to a sum of ₹54 crores. With the acquisition, Infibeam will hold 11.35 percent stake in the company combined.
Vishal Mehta, Founder, and CEO of Infibeam told media “In June last year, we did a strategic investment in CCAvenue. We will integrate payment as part of our existing framework of build-a-bazaar, which is a distributed marketplace. As a result, we will meet the merchant requirement of a payment gateway.”
The acquisition and investment will value CC Avenue at around ₹2000 crores. Infibeam has also signed a MoU to acquire DRC Systems Pvt. Ltd. through NSI Infinium Global Pvt. Ltd.
As the Founder-CEO of Avenues India Private Limited, Vishwas has guided the company to become South Asia’s No. 1 e-commerce service provider. The company’s first initiative, CCAvenue was launched in September 2001 and it today provides payment gateway services to over one hundred thousand eMerchants across the world.