Akash Portfolio

Infibeam Avenues Ltd
Infibeam operates an online payment system with technology platform solutions across industry verticals. The company operates as a payment processor for online merchants, websites and commercial users for which it charges a fee on successful transactions. Infibeam’s payment system, CCAvenue, provides nearly 250 unique payment options in India, processing payments across 27 international currencies that enable online and mobile payments for merchants. Infibeam also provides services of various platforms, such as the Government e-Marketplace (GeM), Bharat Bill payment services (BillAvenue) and hospitality solutions (ResAvenue), among others.

Bullish viewpoints

1. One of the few listed fintech company in India.
2. The Company has received In-Principle Authorisation to operate as a Payment Aggregator under the Payment and Settlement Systems Act, 2007 from Reserve Bank of India.
3. Profitable fintech.
4. Has become debt free.
5. International expansion in UAE, Saudi Arabia, Oman and USA.
6. Plans to provide all financial services to merchants in future.
7. Trading at lower valuation to peers.

Risks

1. Exposed to regulatory changes.
2. Intense competition from PE and VC funded startups like Billdesk, PayU1, Razorpay etc.
3. Lesser growth in comparison to peers.
4. Might require debt to go in funding space.
5. Vulnerability to changing technologies and consumer trends in e-commerce services.

Took a small position recently. Any views are welcome.