Digital payments company AvenuesAI (formerly Infibeam) reported a 6% increase in consolidated net profit to Rs 71.7 crore in the September quarter of FY27, compared to Rs 67.7 crore in the same quarter last year.

Revenue from operations stood at Rs 2,879.2 crore, up 47% from Rs 1,964.9 crore in Q2 FY26, according to its financial statements filed with the National Stock Exchange (NSE).

Sequentially, profit declined over 15% from Rs 84.8 crore, while operating revenue was up 7% from Rs 2,680.4 crore.

The rise in expenditure outpaced the growth in revenue during the quarter. Total expenses climbed 49% to Rs 2,825.3 crore in Q2 FY27 from Rs 1,890.6 crore in the year-ago period.

Inside AvenuesAI’s business model

AvenuesAI’s core business revolves around payments. Under its payments business, the company provides payment gateway services under the CCAvenue brand. This vertical also houses the company’s credit and lending services, including corporate credit cards and prepaid cards.

Revenue from the payment business surged 49% to Rs 2,822.4 crore in Q2 FY27 from Rs 1,900.2 crore in the same quarter last year. On a quarter-on-quarter basis, it was up 7.5% from Rs 2,625.9 crore.  The payments business also generated a profit of Rs 38.7 crore during the July-September quarter, down 10% from Rs 43 crore a year earlier.

Total payment value increased to Rs 1.77 lakh crore, while payments net take rate moderated 4% to 5.06 basis points.

Besides its bread-and-butter payments business, AvenuesAI also runs an enterprise e-commerce platform offering software, advertising and infrastructure-rental services. This business raked in Rs 56.8 crore in Q2 FY27, marking a 12% decline from Rs 64.8 crore a year earlier. Segment profit slumped 36% to Rs 27.1 crore in Q2 FY27 from Rs 42.5 crore in the corresponding quarter of the previous fiscal year.

Vishwas Patel, managing director and CEO of AvenuesAI, said:

Our second quarter performance reflects our conscious decision to build transaction scale through competitive pricing. Payments TPV grew 19% sequentially, while our net take rate moderated by approximately 4%. We see this as an investment in stronger merchant relationships and our long-term market position.

We are working to unlock the value of Rediff, expand CCAvenue internationally and build AI-led transaction intelligence through TISco. Together, these priorities support our ambition to build a more valuable financial technology ecosystem.

Three strategic priorities for FY27

1. Unlocking the value of Rediff: Last year, AvenuesAI transferred its e-commerce platform business to Rediff India. The company said it continues to pursue the integration of Rediff’s consumer and enterprise offerings with AvenuesAI’s digital payments and AI infrastructure.

For enterprises, the company has unveiled RediffOne, a unified business suite spanning email, e-commerce platform, AI agents, HRMS, CRM and ERP. For consumers, it has been running a pilot of its UPI app, RediffPay. These offerings are expected to open up new revenue streams for AvenuesAI.

During the Q1 FY27 earnings call, Avenues AI chairman Vishal Mehta said the company was nearing a full-scale launch of RediffPay, months after testing with a closed user group. However, there is no clarity yet on whether it has been rolled out to all users.

Note that Rediff filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) through the confidential route in April. The company is reportedly looking to raise between Rs 600 crore and Rs 800 crore through an initial share sale.

2. Expanding CCAvenue payments internationally: AvenuesAI aims to build a scalable international payments franchise, including in the US. Besides India, the company also has a presence in the UAE and Saudi Arabia.

3. Building AI-led transaction intelligence (TISco): The company is also developing AvenuesAI Transaction Intelligence Score (TISco), an AI-led scoring model. Key functions include:

• Risk Assessment: Analyses permitted transaction and merchant-behavior signals to evaluate potential risk.
• Fraud Prevention: Detects and mitigates fraudulent activity across digital payment and financial workflows.
• Merchant Intelligence: Provides data-driven insights into merchant patterns and performance.
• Financial Services: Integrates intelligence signals into broader enterprise and banking workflows.

FY27 outlook

AvenuesAI has raised its annual earnings guidance, citing merchant scale, operating discipline and additional monetisation opportunities through Rediff, enterprise technology and applied AI.

The company now pegs its FY27 consolidated revenue at Rs 13,000 crore, up from its previous estimate of Rs 11,000 crore.

It is also monitoring the potential changes to merchant discount rate (MDR) policy for eligible UPI transactions. The National Payments Corporation of India has proposed a 0.4% MDR on person-to-merchant UPI transactions above Rs 2,000, with charges capped at Rs 300 for transactions above Rs 75,000. 

Earlier reports suggested that the proposed UPI MDR framework would be implemented “immediately after Diwali”. However, there is no clarity yet on when the MDR rules will take effect.

If MDR on UPI makes a comeback, it will benefit both CCAvenue and RediffPay, according to the management.

“Today, almost 22% of our transactions are on UPI. So any kind of monetization on that UPI will add additional revenues definitely to our platform,” Patel had said on the Q1 FY27 analysts’ call.

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