Infibeam divests subsidiary to Ingenius E-commerce for Rs 60 cr

Infibeam Avenues said it has divested its wholly-owned subsidiary Infinium (India) Ltd (IIL) to Ingenius E-commerce for Rs 60 crore.

The Memorandum of Understanding (MoU) was executed on January 19 and the expected date of completion of the deal is January 31, 2019, it added.

"...the company (Infibeam Avenues) has divested its ownership with control in its wholly-owned subsidiary ie Infinium (India) Ltd to Ingenius E-commerce...the consideration received from the sale is Rs 60 crore," Infibeam said in a BSE filing.

In a separate statement, Ingenius E-commerce -- which owns and operates B2B aggregator portal Tradohub for industrial goods -- said it has entered into a binding agreement with Infinium India to "invest and acquire 100 per cent equity stake with control" at a consideration value of Rs 60 crore.

Ingenius said it is growing at more than 50 per cent year-on-year with an annual revenue of Rs 300 crore. In the last three years, it has registered more than 10,000 small and medium enterprises (SMEs) across several product segments like food and agriculture, polymers, chemicals, pharmaceuticals, metals and others on its platform.

IIL, on the other hand, has strong engineering team that works on design and implementation of large technology solutions involving hardware, software, satellite and digital communications.

"Tradohub has been growing by meeting the requirements of SMEs and by making them competitive in the digital ecosystem. The acquisition of IIL will help the company accelerate growth by targeting SMEs in consumer-focused sectors where there is significant momentum and an opportunity to serve the growing requirements," Ingenius E-commerce Chairman Akash Domadiya said.

Currently, majority of IIL revenues comes from trading and distribution of consumer products and providing e-commerce solutions to government and institutions with focus on semi-urban and rural India using V-SAT connectivity, the statement said.

"With the acquisition of IIL, Ingenius expects to strengthen its technology capabilities and expand the existing merchant base and distribution across other product segments including but not limited to IT products, appliances, software, consumables and services," it added.