Infibeam, India’s first e-commerce startup to get listed, has announced that it made a strategic investment worth ₹6 crore in Instant Global Paytech, a Mumbai-based payment technology platform.
In a stock exchange filing, Infibeam said that it has acquired 14,400 equity shares as part of the deal, putting the transaction value at ₹6 crore (around $850,000). The filing also showed that Go Payments’ paid-up share capital comprised 15,000 equity shares of ₹10 each.
Instant Global Paytech operates Go Payments, a platform that facilitates offline transactions by merchants and retailers in small cities and towns. The newly raised funding will be used by the firm to acquire customers and merchants. It will also spend money on improving its technology as well as to strengthen its team.
In a separate note, the company said, “An estimated 90% of the transactions in the country are still cash-based and there are over 700 million people who fall into the category of those who have access to cash and digital instruments but are not comfortable transacting in the digital world.”
Go Payments was founded in April earlier this year by Vivek Patel and Daykin Creado. As said, it offers payment technology for offline transactions, enabling merchants and retailers to offer digital solutions to cash-transacting customers. The company’s digital financial services are used for direct money transfer, bill payments, mobile recharge, travel bookings, and more.
Infibeam, which started off as an e-commerce firm, has pivoted its business model subsequently. Its core e-commerce solution BuildaBazaar and payment solutions business CCAvenue together account for nearly 98 percent of the company’s revenues.