Infibeam to acquire 54% stake in Rediff

Infibeam Avenues Ltd. has entered into a definitive agreement to acquire a 54% stake in Rediff.com India Ltd. for an amount not exceeding Rs 25 crore.

This acquisition, which is internally funded, aims to leverage Rediff's established internet presence, news platform, and enterprise email services, said Infibeam, in an exchange filing.

"I am delighted to pass on this iconic brand and its legacy into the capable hands of Mr Vishal Mehta, Infibeam Avenues. I strongly believe that the new avatar of Rediff under his leadership will further strengthen the company and accelerate business growth,” said Ajit Balakrishnan, Chairman & CEO of Rediff.com.

IIM-Calcutta alumnus Balakrishnan will continue to advise Rediff, which was established in 1996.

Rediff reported a revenue of RS 36 crore in FY23-24, according to the exchange filing.

The acquisition aims to synergise Infibeam’s digital payment services, enterprise software platforms, and AI solutions with Rediff's diverse services, which include cloud-based enterprise email storage and content distribution.

"Rediff has a substantial user base and data assets and ranks amongst the top 1000 sites globally in traffic with more than 55 million monthly visitors, providing valuable insights into user behaviour, preferences, and spending patterns," the exchange filing said.

Rediff.com's user base offers a fertile ground for cross-selling financial products such as loans, insurance, and investment products using artificial intelligence. RediffMONEY can use the platform to promote these services, increasing product uptake and offer customer lifetime value, it added.

“This majority stake signifies a pivotal step towards amplifying the company’s products and services ... The company expects to witness double-fold revenue growth with its entry into the financial sector as an aggregator in coming quarters," said Mehta.

(The story was updated with more information.)