Fintech company Infibeam Avenues Ltd has restructured its UAE subsidiary’s shareholding ahead of its anticipated listing on the Abu Dhabi Stock Exchange (ADX). The move aims to enhance its digital payment strategy in the Middle East, the company stated in a stock exchange filing.

The reorganization involves transferring mirror shareholding in Avenues World FZ-LLC to a newly incorporated entity, Infibeam Avenues ME SPV Ltd, based in Abu Dhabi. Infibeam’s wholly-owned UAE subsidiary, Vavian International Ltd, will hold an 80% stake in the new entity, which will, in turn, own Avenues World FZ-LLC. The latter operates CCAvenue.ae, a widely used payment gateway in the UAE.

Strengthening Digital Payment Presence in MENA

Market experts suggest this strategic restructuring aligns with Infibeam’s aggressive expansion plans in the Middle East and North Africa (MENA) region’s growing digital payments sector. Over the past three years, CCAvenue.ae has gained significant traction in the UAE’s payments landscape.

The reorganization is also part of Infibeam’s broader plan to optimize fundraising for its upcoming ADX IPO. The company had previously raised $20 million through a pre-IPO equity placement, valuing Avenues World FZ-LLC at $100 million post-money.

Expanding Footprint in UAE’s Booming Digital Payment Market

Infibeam’s UAE operations have seen rapid growth, particularly since 2020. In August 2023, the company processed transactions worth over AED 1 billion in a single month. By October 2023, CCAvenue.ae had handled transactions exceeding AED 24.5 billion, catering to over 5,000 merchants, including high-profile clients such as Burj Khalifa, Emaar, Damac, Nakheel, and Trump Golf Dubai.

Unlike India, the UAE’s digital payment sector is dominated by high-commission transactions, primarily processed through debit/credit cards and net banking. The market is expected to grow at a compound annual growth rate (CAGR) of 8.02%, reaching $39.13 billion by 2027. Infibeam is capitalizing on this trend with its mobile-based QR code solutions launched in 2023, targeting offline payments.

Strategic Partnerships and Expansion Plans

Infibeam has further solidified its position in the region through a partnership between CCAvenue and PayPal, expanding global payment acceptance across MENA. Additionally, its Saudi Arabian subsidiary recently secured Payment Tokenization Service Provider (PTSP) certification from the Saudi Arabian Monetary Authority (SAMA), marking a significant milestone for an Indian fintech firm in the Kingdom.

Future Growth and Stock Performance

During its FY24 earnings announcement, Infibeam emphasized its focus on international expansion, particularly within the Middle East. The company has launched various initiatives, including express merchant settlements and CCAvenue TapPay, to drive growth in the region.

Analysts tracking Infibeam suggest that the company’s latest restructuring signals a strategic shift towards leveraging international markets for revenue expansion, with a strong focus on the UAE’s lucrative digital payments sector.

On Friday, Infibeam Avenues’ stock closed at Rs 19.37, up by 1.57%.