Buoyed by the strong revenue growth in Q2 fiscal year 2019, Ahmedabad-based e-commerce player Infibeam Avenues has now set its sight on large-scale government and PSU (public sector unit) buying to drive its future growth, Managing Director Vishal Mehta said to FE Online in an interview.
Infibeam, which is an official e-commerce retailer for Apple iPhones and iPads in India, had won in 2017 a five-year contract to manage the e-commerce services of government’s e-Marketplace, or GeM. The platform facilitates digital procurement of goods and services by different government departments and organisations.
“Government and PSUs buying alone in itself larger than most of the internet companies. This makes it a very large market,” Mehta told FE Online.
The company is also looking at boosting its transaction services in India and outside as e-commerce scales up. Also, Mehta is looking at the bill payments market in India as a growth area with the launch of its unified digital bill payments system called BillAvenue.
Infibeam has also been focused on its international growth even as the company acquired digital payment processing firm Vavian International in the Middle East for around Rs 8 crore. “International growth opportunity is significant even as we have kept growing with partnerships while the margin is also better,” Mehta said, adding, “We prefer to build businesses internally and not to buy.”
Earlier, last week Infibeam announced its standalone revenue for the fiscal second quarter jumped 83% on-year, driven by growth in its web services solution including its e-commerce and payment solutions. “The volumes have grown significantly quarter over quarter, so to operate at scale is a big move for us and that is a great opportunity ahead for us,” Mehta said.
“If you look at the first two quarters alone of this FY, we processed about Rs 23,000 crore worth transactions; we processed that much in the entire last year. We believe we can close the current fiscal year at an annual run rate of Rs 50,000 crore,” he added.