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

Online companies are now selling meat and a new perception

Infosys enters JV in Japan; to pay about 2.7 billion yen

Naspers and CPPIB back Byju's, valuation jumps to $3.6 billion

Small sellers on Amazon, Flipkart seek PMO help to safeguard their interests

RBI seeks opinion of Indian govt & NPCI on WhatsApp's payment approval delay

Google+ to now shut down in April after finding a new privacy bug that affected 52.5M users

Indian govt likely to meet FY19 digital payments target

Obopay partners with Federal Bank & Mastercard to launch its own prepaid card for corporates

UrbanClap facilitates ESOP sale for upto Rs 18 crore

Walmart to tap Flipkart's tech expertise

Snapdeal claims to have added 50,000 sellers in last 12 months

Amazon targets airports for checkout-free store expansion

PayU India’s valuation estimated at $2.5 billion: Citi report

Amazon India & Flipkart are on similar run rate of $11.2B: Barclays

Tencent Music presses play on $1.2 billion U.S. IPO

Instagram Shopping may launch in India in 2019: Report

PhonePe users can now directly book IRCTC train tickets on the app

Facebook opens monetisation features for Indian content creators

UrbanClap raises $50M from Steadview Capital & Vy Capital

Xiaomi India nears Rs 23,000 cr in revenue within 4 years of operations

Paytm's unlisted owner One97 tops ₹1 lakh crore in valuation

Amazon may buy out Kishore Biyani's Future Group in new business deal

With $1.8B, Bessemer looks to make bets across fintech, healthcare technology & SaaS

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