In a strategic move, Infibeam Avenues Ltd, a prominent fintech firm, has entered the capital markets and digital lending software arena by securing a substantial 49% equity stake in Pirimid Fintech, making a strategic investment of INR 25 crore (INR 250 million) to fortify this collaboration.
Riding the Wave of Demand in Global Capital Markets
This decision is a direct response to the growing demand in the global capital markets for state-of-the-art secured and zero-latency AI-backed software. The surge in interest revolves around the need for cutting-edge technology that streamlines trading, research, and investment processes. Artificial Intelligence (AI) is playing a pivotal role in transforming the capital market, with various financial entities utilizing AI-backed trading software for enhanced performance, accuracy, and returns. This technology also plays a crucial role in bolstering compliance, fraud detection, and prevention.
Pirimid Fintech’s Dual Focus: Capital Markets and Digital Lending
Pirimid Fintech, already established in the capital markets technology space, is making significant strides in the digital lending sector. With expertise in modern loan origination systems, data sourcing, and an advanced business rule engine (BRE), Pirimid Fintech aims to leverage Infibeam Avenues’ technological foundation to develop innovative digital lending solutions. These solutions are poised to streamline the lending process, offering faster credit disbursement, enhanced customer experiences, and improved risk management through advanced data analytics and AI algorithms.
Diverse Clientele and Notable Collaborations
Pirimid Fintech caters to a diverse clientele in both global and domestic capital markets. The company specializes in developing tailored capital markets and digital lending products for clients like BidFX, a subsidiary of the Singapore Exchange (SGX), as well as financial institutions such as Bank of Baroda and Indian fintech player Lendingkart.
Strategic Integration for Enhanced Capabilities
The CEO of Pirimid Fintech, Mr. Nirav Prajapati, expresses excitement about the investment, stating that the strategic partnership with Infibeam will enhance their capabilities. Infibeam’s expertise in building highly secured and scalable technology frameworks is expected to seamlessly integrate with Pirimid Fintech’s robust tech solutions, effectively addressing the rising demand for risk mitigation and enhanced operational safety in online capital market trading and digital lending systems.
Addressing Regulatory Concerns and Ensuring Security
This collaboration aims to integrate Infibeam’s digital payments and AI-based frameworks with Pirimid Fintech’s capital market trading software, not only improving client performance but also addressing regulatory concerns about the safety and security of stock market trading. Market regulators globally prioritize trust, security, and risk management, with the AI-driven financial fraud detection sector forecasted to grow from USD 6.5 billion in 2022 to USD 10 billion by 2027.
Unlocking Additional Revenue Streams
This strategic investment not only propels Infibeam Avenues to new heights in the capital market technology space but also provides an opportunity to capitalize on existing payments and platform business for this emerging vertical. The Chairman & Managing Director of Infibeam Avenues Ltd, Mr. Vishal Mehta, sees this as a compelling growth opportunity to synergize existing digital payments and platform solutions with Pirimid’s capital market tech products.
Expanding Payment Processing Business
With transactions worth USD 54 billion processed in FY23, Infibeam Avenues Ltd anticipates a boost in its payment processing business through this investment. Integrating its flagship payment gateway brand – CCAvenue with Pirimid Fintech’s capital market & digital lending tech software products is expected to increase payment transaction volumes, resulting in a revenue surge from Infibeam’s payment business.
Global Market Outlook
Globally, capital markets processes involve multiple payment transactions per day, surpassing those in e-commerce or offline payment channels. The global online trading platform market, reaching USD 8.9 billion in 2021, is projected to reach USD 18.4 billion by 2031, representing a compound annual growth rate (CAGR) of 7.8% from 2022 to 2031.
Infibeam Avenues IPO: Among The First E-Commerce IPOs
The latest development is a major milestone for Infibeam Avenues which tapped the Indian primary markets in March 2016. Arguably the first such offer from e-commerce players in India, Infibeam Avenues IPO was a hit among investors with full subscription. Post listing too, the company did very well and was among the best IPOs in 2016. Since its debut on the bourses, the stock has gained over 100% in these years after adjusting for stock splits and bonus shares.
