Infibeam avenues acquires 20% stake in US-based XDuce

Shares of Infibeam Avenues gained nearly 10% in morning trade on Monday after the fin-tech company announced the acquisition of a 20% stake in the United States-based XDuce Corporation for $10 million (nearly ₹83 crore).

The company’s board of directors approved the acquisition in XDuce, which will be completed within 90 days subject to necessary approvals, the company said in a filing to the stock exchanges on Saturday, February 24.

After the announcement, shares of Infibeam Avenues Ltd surged as much as 9.85% to a high of ₹37.9 apiece on NSE on Monday.

Infibeam Avenues will integrate its Phronetic AI capabilities into XDuce's existing framework. The integration will help in enhancing the intelligence quotient of XDuce’s solutions, the company informed the bourses.

XDuce will support the US growth of Infibeam Avenues Ltd’s payment gateway brand, CCAvenue, positioning it strongly in the profitable financial sector of the country, the company said.

Commenting on the latest acquisition, Infibeam Avenues' Joint Managing Director Vishwas Patel said that the investment in XDuce will help the company’s growth in the international market.

“Last year, international business contributed less than 10% to Infibeam Avenues Ltd's total revenue and we plan to grow international business to 30% of total revenue in the next couple of years. This strategic investment in XDuce will support the growth of the CCAvenue payments business as well as our platform business in US,” he said.

“Collaboratively, we aim to enhance and broaden our product offerings, offering businesses and consumers in the US access to state-of-the-art AI-driven technologies for identifying and preventing transaction fraud,” said Jay Dave, CEO of XDuce.

Headquartered in New York, XDuce is an AI development company with a specialisation in solutions for businesses looking to optimise their internal operations and customer-facing systems for diverse industry verticals. With a team of over 150 software developers, XDuce offers solutions to companies like Morgan Stanley, Capgemini, Goldman Sachs, Hollingsworth and Vose, Bank of America, Deutsche Bank, BNP PARIBAS, NYP, QBE, IEEE, and FMCNA. Meanwhile, Infibeam Avenues' has also announced the divestment of its 85,000 equity shares in Fable Fintech Private Limited.

The divestment or sale of shares is to be completed within 45 days following which Fable Fintech will no longer be an associate company of Infibeam Avenues.

Following to the news, shares of Infibeam Avenues were trading 7.2% higher at ₹37 apiece on NSE at 12:53 pm.