Infibeam Avenues acquires Rediff.com in $3M

A new twist in the Indian digital market; Infibeam Avenues, one of the leading financial technology solutions firms, has taken over a 54.1% stake in Rediff.com, the largest and one of the oldest Internet-based platforms in the country.

The transaction is expected to be around ₹50 crore (about $3 million) which makes it quite significant as Infibeam Avenues is looking forward to leveraging on Rediff’s content and news aggregator service that can complement the company’s sophisticated digital payment solutions.

This is Infibeam’s aggressive step towards venturing into the digital content market where it aims to synergize its financial services with Rediff’s large cyberspace. This could transform Rediff.com from a traditional news and content site into a more modern-oriented digital financial services platform which might change the way people spend time on news sites and other online services.

Infibeam’s CEO Vishal Mehta also echoed optimism about the acquisition saying it is not just a scale game; it is the marriage of financial transaction and content space.

Mehta added that this move forms part of Infibeam’s larger plan to grow its presence in the digital economy through the use of AI and fintech to improve the experience of users across platforms.

Rediff, which was once a flagship internet company in India, has been gradually pushed to the sidelines of the sector due to competition from new entrants. This acquisition comes as a break in the morale of the aging platform which has an opportunity to reinvent itself under the tutelage of Infibeam. Thus, with the help of Infibeam’s addition of fintech, Rediff.com could become one of the major players in the growing interrelated spheres of digital media and finance.

• The market has reacted positively to this acquisition, especially to Infibeam Avenues’ shares where the company has experienced a boost probably as a result of this acquisition.

Since both are preparing for the integration, the observers will be interested to know how this collaboration will change the digital environment in India, including the provision of digital financial services and content.

This is not about saving Rediff but about creating a new age of convergence where content and commerce blur into one. The success of this initiative may well lead to similar coups in the future where financial technology with other digital content to provide complete online solutions.