According to a latest stock exchange filing, Infibeam has now acquired cloud ERP solutions provider DRC Systems through its wholly owned subsidiary NSI Infinium Global Pvt Ltd. The two e-commerce entities have signed the memorandum of understanding (MOU) concerning the acquisition and will now jointly serve the customer needs.
Following the takeover by Infibeam, DRC system will expand its team by an additional 200 developers and technology professionals. This tech team will be deployed to further building BuildaBazaar, a distributed marketplace platform of Infibeam.
The platform presently offers customized software solutions to merchants globally and presently serves more than 66,000 merchants. DRC system will further accelerate the business for BuilaBazaar and assist Infibeam to generate further revenues from its services.
Speaking of the acquisition, Vishal Mehta, MD, Infibeam said,
Through this acquisition, Infibeam and DRC Systems will be able to jointly serve an ever growing needs of customers in customizing their e-commerce platforms.
The companies are still to unveil the purchase price for the deal. The acquisition of DRC systems will also support Infibeam to enhance productivity by diverting a specialized team towards BuildaBazaar. DRC Systems is in the same business since its inception in 2012. It runs a profitable venture and reported revenues in excess of Rs 10 crore as on Feb 28, 2017.
As one of the homegrown e-commerce companies, Infibeam holds a competitive position in the market. The company’s consolidated revenue for the quarter which came in at Rs. 102.7 crores, registering 10.4% quarter-on-quarter decline. Earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter rose by 2.4% QoQ to Rs. 17.1 crore. The EBITDA margin for the quarter stood at 16.7%.
Apart from extending its portfolio with DRC System, the company recently acquired CC Avenues for an expected valuation of ₹2,000 crores. The company already owned a 3.85% stake in CC Avenue through subsidiary NSI Infinium Global which was further increased by another 7.5% stake through investments of around Rs. 150 crores.