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.

Trending News

Why Amazon’s Flipkart bid is just not high enough

Selling without MRP, expiry dates to cost etailers

TCS hits $100Bn market cap: A new phase for India Inc?

Snapdeal posts Rs 4,647 crore net loss in 2016-17

Flipkart-Walmart deal: What it means for the etailer and the whole industry

NCLAT stays CCI penalty of Rs 136cr on Google in search bias case

Walmart may rope in Google parent Alphabet for the Flipkart deal

Internet shutdown cost Indian economy $3 billion from 2012-17: Study

Flipkart and Amazon plan mega summer sales in May

International sales now account for 48% of Twitter's revenues

70% of mobile phones buyers in India opt for non-cash payments

Amazon India expects groceries & household products to account for 50% of business in 5 yrs

India to come out with a E-commerce policy framework in 6 months

Online learning platform Career Anna raises Rs 3 Cr funding

Wal-Mart will offer to buy up to 86% of Flipkart

Agritech startups Sabziwala and LivLush merge their business under new entity Kamatan

Avail Finance lands $17.2M from Matrix Partners & Ola, Freecharge and Flipkart founders

RBI suggests tax sops, self-regulation to build fintech space

Swiggy hires new CEO for its Access Service, gets new CFO

Logistics company Delhivery registers 44% increase in FY17 revenues

WeWork to acquire one of the oldest social networks, Meetup

Qualcomm rejects Broadcom's $103 billion offer

EasyRewardz gets $2 million Series-A funding

'Anemic' iPhone 8 demand drags Apple shares lower

Lending platform Lenden Club gets Rs 3.5cr in Equity Investment

On festive sales, Flipkart says 65% clients from Tier-II cities