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Infibeam Avenues Plans ₹700 Crore Rights Issue To Accelerate AI And Digital Expansion

Written by: Team Angel OneUpdated on: 19 Jun 2025, 9:20 pm IST
Infibeam Avenues share price falls 1.38%, the company announces a ₹700 crore rights issue to fund an AI platform, Rediff revamp, and expansion in digital payments.
Infibeam Avenues Plans ₹700 Crore Rights Issue To Accelerate AI And Digital Expansion
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Infibeam Avenues Limited has unveiled plans to raise up to ₹700 crore through a rights issue, reinforcing its commitment to long-term digital and AI-led growth. 

Infibeam Avenues Share Price And Rights Issue Announcement

Infibeam Avenues Limited, one of India’s prominent digital payments and e-commerce technology platforms, has announced a proposed rights issue of up to ₹700 crore. This strategic move is intended to support growth initiatives across the company’s core subsidiaries and digital ventures.

Infibeam share price was trading at ₹21.47, down 1.38% as of 2:29 PM on June 19, 2025.

Use of Proceeds From the ₹700 Crore Rights Issue

The net proceeds from this rights issue will be primarily allocated towards the following:

  • Investment in key subsidiaries: Infibeam Projects Management Pvt. Ltd., Nueromind Technologies Pvt. Ltd., and Rediff.com India Ltd.
  • Support for strategic acquisitions.
  • Funding general corporate purposes.

₹294 Crore Investment In Nueromind Technologies For AI Development

A significant portion of the funds, ₹294 crore, has been earmarked for Nueromind Technologies Pvt. Ltd., the AI-focused subsidiary. The investment will help build an advanced AI stack that includes:

  • An Agent AI Developer Platform.
  • Next-generation reasoning models.
  • Infrastructure for high-performance computing.
  • Acquisition of domain-specific training datasets.
  • Hiring specialised AI talent.

These innovations aim to power autonomous agents capable of decision-making across text, speech, vision, and sensor data. The AI push is expected to enhance the company’s performance across digital payments, e-commerce, and enterprise services, with future-ready applications in financial services, automation, and defence intelligence.

Rediff.com To Be Revamped Into An AI-Integrated Digital Brand

Infibeam will also direct a part of the proceeds to strengthen Rediff.com India Ltd., which was acquired in 2024. The funds will be used for:

  • Marketing and technology upgrades.
  • Talent acquisition.
  • Launching RediffPay, a UPI TPAP offering.
  • Expanding RediffOne into a digital operating system that integrates ERP, CRM, HRMS, and payments for small businesses.

This strategy reflects the company’s vision to re-establish Rediff as a modern AI-powered consumer brand.

Infibeam Projects Management To Prepay Loans

The capital will also enable Infibeam Projects Management Pvt. Ltd. to prepay outstanding loans. This move is expected to improve financial flexibility and reduce the company’s debt position.

Future Acquisitions In AI And Emerging Technologies

The company plans to use a portion of the proceeds for potential acquisitions aligned with its long-term vision. These may include:

  • Proprietary AI platforms.
  • Fraud analytics solutions.
  • Conversational interfaces.
  • Data infrastructure businesses.

Both domestic and international opportunities will be explored to complement its current capabilities.

Financial Performance In FY25

The company recently announced its financial results for the year ending 31 March 2025:

  • Gross revenue rose 27% YoY to ₹39,926 million.
  • Net revenue stood at ₹5,258 million.
  • EBITDA increased by 23% to ₹3,121 million from ₹2,537 million in FY24.
  • PAT grew 42% YoY to ₹2,095 million from ₹1,478 million in FY24.

Read More: Bank Frauds in India Triple to ₹36,000 Crore: How Steps Are Being Taken to Tackle the Surge

Conclusion

Infibeam’s focus on artificial intelligence mirrors the global surge in AI investments. With the availability of large-scale datasets and rapid computing advancements, AI is reshaping fraud detection, personal finance, enterprise automation, and predictive analytics.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.

Published on: Jun 19, 2025, 3:50 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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