Infibeam tweaks business to keep up with 4G wave

Infibeam, India’s first listed e-commerce player, made a major shift in its business strategy by migrating from subscription-based e-commerce to transactional-based e-commerce as the internet user base increased with the advent of cheaper 4G.
The tweak in its model also reflected in its last three-quarters results as transactional revenue has boosted its Infibeam Web Service contribution by 66% to its total revenue.
Subscription-based e-commerce business model are usually those where a customer or merchant must pay for a service and e-commerce company earn a commission on the transaction.
While the transactional-based e-commerce model mainly focuses on transactional earnings.
“About five to ten years ago, user base was smaller and growing slowly, so subscription model made sense, now with cheaper 4G and sudden spurt in user base, it makes more sense to have transaction-based e-commerce model,” said Vishal Mehta, MD, Infibeam.
Mehta also highlighted FY18 last three quarters results transaction processed on platforms that it provides to its clients. In Q1 FY18 the transaction processed on platform worth Rs 4,502 crore, Q2 it was Rs 4,580 crore and recently in Q3 it grew to Rs 5,414 crore.
“If we take only the Q3 results, in terms of percentage, my revenue of Infibeam Web Service contribution to total revenue has jumped to 66% in Q3 FY18 compared to 39% in Q3 FY17” said Mehta.