Infibeam enters corporate credit card biz with Cardpay acquisition

Leading global FinTech solutions provider Infibeam Avenues Limited (Infibeam) has completely acquired Bangalore-based Cardpay Technologies Limited (Cardpay), offering one unified spend management platform to corporates. Cardpay, under the brand name GRIT, offers solutions related to physical and virtual credit cards, invoice processing, and early payment discounting.

With the acquisition of Cardpay, Infibeam strengthens its payments credit services business with a comprehensive credit issuance portfolio including secured and unsecured lending. It also makes Infibeam, the only Indian player with a complete suite of Payments Acquiring and Payments Issuing products, present on both sides of the digital payment transaction, the company said in a statement.

Vishwas Patel, Executive Director and CEO Payments, Infibeam Avenues Ltd, said, “Cardpay has built a revolutionary Card issuance framework to navigate the hurdles that prevent early-stage companies from Credit card services and analytical decision making. There are many start-ups and SMEs in India requiring ongoing credit support to meet their recurring business expense. Cardpay’s technology and experience, along with Infibeam’s suite of Fintech portfolio will provide all the solutions to merchants under one roof, allowing them to scale and prosper.”

Following the acquisition, Cardpay becomes a wholly-owned subsidiary of Infibeam. The founders and its team will continue to lead the operations of GRIT spend management business and work towards Infibeam’s objective to grow credit services and issuance business in India and globally.

The corporate credit card is tailored to meet recurring business expenses of enterprises that find difficulty getting working capital loans. GRIT cards offer an interest-free credit period as per the needs of the business.

Cardpay is founded by Kumar Srinivasan, who has two decades of rich experience in FinTech, globally, especially in payments, retail, credit, and lending services. He has also worked in a leadership role with Amazon Payments, USA.

The Ahmedabad-based company was also impacted by the COVID19 virus as it witnessed a 27% decline in its revenues at INR 1,359 million in the fourth quarter of Indian fiscal 2021 ending March 31, 2020. But it also saw an 8.6 % increase in the amount of transactions processed at INR 168 billion. The volume of transactions processed was up 39% at 40 million. The company claimed to have processed transactions worth INR 900 billion on its platform during FY20.

While the full extent of Covid-19ÔÇÖs impact is yet to be unfolded, the company said that it remains bullish on the growth of its fintech business and is looking for expansion in other geographical regions. Management is of the strong opinion that the situation will normalize during this current financial year as more and more people and businesses start adopting digital technology.

Infibeam has, however, achieved a strong double-digit revenue growth compared to the previous year. During the year, upgrades and additional requirements by few subscription-based enterprise clients, and an increase in volumes on GeM (Government-managed-portal (transaction-based client) led to the growth. However, Q4 FY20 revenue was impacted due to lower invoicing and collections on account of lockdown in the last few days of March 2020.

The company’s payments business in UAE, however, recorded strong sequential growth in the months of Q4 FY20, and in April and May 2020. The value and volume were up 42% and 48% respectively in May 2020 vs. Mar 2020. The value and volume grew in Ramadan May 2020 by 10% and 7% respectively over April 2020, compared to a fall of 13% and 8% in Ramadan May 2019 compared to April 2019. International markets present a strong growth opportunity. The company is expanding its geographic footprint with the launch of payments business in the Kingdom of Saudi Arabia and the US. The Company plans to operate in 10-12 international markets over the next two to three years.

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