Remember Rediff? India's internet pioneer sells majority stake for $3M
Infibeam Avenues, one of India's leading payments infrastructure firm, has acquired a 54% majority stake in Rediff.com. The deal, valued at up to $3 million, signifies a major shift for the 28-year-old internet services company. Founded in 1996 during the initial dot-com boom, Rediff.com was the first Indian internet firm to list on NASDAQ in 2000.
Rediff.com's journey and challenges in the digital landscape
Rediff.com was established by Ajit Balakrishnan, an IIM-Calcutta alumnus. It emerged as a leading web portal in India, offering services such as email, news, and e-commerce. At its peak, it was valued at over $600 million on the NASDAQ stock exchange. However, the company faced challenges in adapting to the rapidly changing digital landscape during the 2000s and 2010s. Despite attempts to diversify its services, it struggled against more nimble competitors and eventually delisted from NASDAQ.
Infibeam Avenues's plans for Rediff.com post-acquisition
Despite its challenges, Rediff.com continues to draw over 55 million visits each month, as per Infibeam Avenues. The fintech company plans to utilize Rediff's strong user base to cross-sell products such as loans, insurance, and investment advisory. In the fiscal year ending in March, Rediff reported revenues of $4 million. Following the announcement of this acquisition, shares of Infibeam Avenues witnessed a significant surge of 8.4%, reaching ₹33.6 on Friday. However, the stock closed slighter lower at ₹32.3 (up 4.3%).
