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E-commerce company Infibeam to receive Rs 40 crore investment from TV18

Infibeam is all set to receive investment from Mukesh Ambani-controlled TV18 Broadcasts worth about Rs 40 crore.

Infibeam, the Ahmedabad-based e-commerce company, which is also the country’s first e-commerce firm to get listed, is receiving about Rs 40 crore funding from TV18 Broadcasts.

In the stock exchange disclosure, the e-commerce company said that it will issue fully convertible warrants equivalent to a 0.4% stake in the company upon conversion. The transaction appears to be an ad-for-equity-style investment.

Last year, Bennett, Coleman and Company Ltd (BCCL), the publisher of The Times of India, had invested Rs 60 crore ($8.8 million) in Infibeam by subscribing to preferential warrants in January 2017.

Infibeam was founded in 2010 by former Amazon executive Vishal Mehta. The Ahmedabad-based e-commerce firm is the only profitable eCommerce marketplace in India. The company went public in April 2016 with listing on National Stock Exchange.

The company was reportedly involved in discussions and also submitted its term-sheet for the acquisition of troubled eCommerce platform Snapdeal. However, the deal didn’t materialise.

For the quarter ended December 2017, the company posted a net profit of Rs 30.8 crore on consolidated total income of Rs 214.94 crore. The company earns significantly from its services segment that includes BuildaBazaar — a platform which provides cloud-based solutions for merchants. BuildaBazaar generates revenue by charging a set-up cost to merchants, as well as through monthly fee and a per-transaction commission.

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