A pre-IPO round is being conducted by Avenues World FZ-LLC to raise $25 million from a limited group of investors. The transaction is likely to be completed within the next 45 days. Following this, the company’s fully owned subsidiary, Vavian International Limited, will hold a stake of at least 75% in Avenues World FZ-LLC.
Source: Entrackr
Infibeam Avenues’ shares will be in focus today (March 27), as the fintech company’s UAE-based subsidiary seeks to raise approximately $25 million in a pre-IPO deal.
Avenues World FZ-LLC is preparing for a listing in the UAE capital market and is currently raising $25 million from a select group of investors through a pre-IPO round. Avenues World FZ-LLC would cease to be the company’s wholly owned step down subsidiary following the cash raise, Infibeam Avenues stated in an exchange filing.
The transaction is scheduled to close within the next 45 days. Following this, the company’s fully owned subsidiary, Vavian International Limited, will hold a 75% or more share in Avenues World FZ-LLC.
According to Inc42, “The foregoing would not constitute a related party transaction. The promoted firms have no stake. Furthermore, Avenues World FZ LLC is not a substantial subsidiary under the Companies Act of 2013 and the SEBI Listing Regulations,” the business stated.
Avenues World FZ is a fintech firm that provides multi-currency payment gateways, B2B payments, credit card phonepay, and lending.
Infibeam, a publicly traded firm that was founded in 2007, provides businesses and governments in a variety of industrial verticals with enterprise software platforms and full digital payment solutions.
Infibeam Avenues received final approval earlier this month from the Reserve Bank of India (RBI) to function as a payment aggregator through its payment gateway brand, CCAvenue.
The company claims to have over 10 million merchants on its platform and onboarded over 500K merchants in the first half of FY24 as a result of its expanding connections with bank partners and merchants.
The business has created a smartphone app called CCAvenue TapPay, which it says is India’s first pin-on-glass SoftPoS solution for merchants and kiranas across the country.
Infibeam Avenues profit after tax increased by 64% to INR 42.1 Cr in the December quarter (Q3) of the fiscal year 2023–24 (FY24) from INR 25.7 Cr in the same quarter the previous year. The platform’s operating revenue more than quadrupled to INR 912 crore in Q3 FY24 from INR 414.7 crore in the same quarter last year.
Infibeam Avenues shares opened at INR 35.34 each on Wednesday (March 27).
