In a strategic move that marks its entry into the capital markets and digital lending software sector, Infibeam Avenues has announced the acquisition of a 49% stake in Pirimid Fintech for Rs 25 crore. The Gujarat-based Pirimid Fintech specializes in providing comprehensive solutions for capital markets, banking and lending, and artificial intelligence and machine learning.
Pirimid’s offerings include hedge fund solutions, robo advisory solutions, digital lending, account aggregation, and advanced AI and ML services such as APIs and Web 3.0. The firm collaborates with financial institutions like the Bank of Baroda and works with local and global companies, including prominent names like LendingKart, Ariana Investment Management (Singapore), and Armadillo (the UK).
The strategic partnership with Infibeam Avenues is expected to accelerate Pirimid’s growth by leveraging the expertise and technology resources of the fintech giant. The collaboration aims to develop new digital lending solutions that streamline the lending process, enhance customer experience, and improve risk management through cutting-edge data analytics and AI algorithms.
Infibeam Avenues sees this move as an opportunity to diversify its portfolio and strengthen its presence in the growing digital lending software market. The partnership aligns with the broader trend in the fintech industry, where companies are increasingly focusing on providing innovative solutions to meet the evolving needs of consumers and businesses.
This acquisition adds Pirimid Fintech to the list of companies either fully or partially acquired by Infibeam Avenues or its subsidiaries. In recent months, Infibeam Avenues and its subsidiaries have expanded their reach through strategic acquisitions, including Sintex Corporate House, Vishko22 Products & Services Pvt Ltd, Cardpay Technologies, Instant Global Paytech, and Uvik Technologies.
In the second quarter of FY24, Infibeam Avenues reported robust financial performance, with consolidated gross revenue reaching Rs 789.9 crore and a profit after tax of Rs 38.3 crore. The company attributed the growth to a surge in total transaction processing volume (TPV), driven by increased payments and platform TPV. Payments TPV rose by 28% year-on-year to INR 769 billion, contributing significantly to the company’s overall growth.
Infibeam Avenues also recorded a notable increase in payment net take rates, experiencing a 25% year-on-year rise to 9.3 basis points. This increase was primarily attributed to a substantial influx of small merchants, making a significant contribution to the company’s payment business net take rates.
For the first time, the company achieved a net revenue of over Rs 100 crore, indicating strong operating performance. Both EBITDA and profit after tax demonstrated impressive growth, surging by 70% and 191%, respectively. The positive financial results underscore the company’s resilience and adaptability in a dynamic fintech landscape.
As Infibeam Avenues continues to expand its footprint and diversify its offerings, the acquisition of Pirimid Fintech represents a strategic step towards capturing new opportunities in the digital lending and capital markets space. The collaboration is poised to drive innovation and create synergies that benefit both companies and contribute to the overall growth of the fintech ecosystem.