SUMMARY
The stake acquisition will enable the fintech company to leverage XDuce’s tech stack and bolster the growth of Infibeam’s payment gateway brand, CCAvenue, in the US
XDuce is an enterprise app and AI development company that specialises in building AI solutions for businesses to optimise their internal operations and customer-facing systems
The deal is part of Infibeam’s plan to ramp up presence globally and bolster its AI play. It recently signed an MoU worth INR 2,000 Cr with the Gujarat government to set up its AI Hub
Fintech company Infibeam Avenues has announced the acquisition of a 20% stake in US-based artificial intelligence (AI) company XDuce for $10 Mn.
Founded in 2006, XDuce is an enterprise app and AI development company that specialises in building AI solutions for businesses to optimise their internal operations and customer-facing systems.
The stake acquisition will enable the fintech company to leverage XDuce’s tech stack and bolster the growth of Infibeam’s payment gateway brand, CCAvenue, in the US, Infibeam said in a statement on Saturday (February 24).
“This strategic move will enable Infibeam Avenues to penetrate the US market with our AI fintech solutions for the financial fraud prevention space,” said Infibeam’s AI arm Phronetic’s chief executive officer (CEO) Rajesh Kumar.
The fintech company said that the acquisition will also enable Phronetic to integrate its capabilities into XDuce’s existing framework to enhance the latter’s solutions.
It added that the strategic acquisition is envisaged to boost the contribution of international business to the company’s total revenue in the next two years.
“Last year, international business contributed less than 10% to Infibeam Avenues Ltd’s total revenue and we plan to grow international business to 30% of total revenue in the next couple of years. This strategic investment in XDuce will support the growth of CCAvenue payments business as well as our platform business in (the) US,” said Infibeam’s joint managing director Vishwas Patel.
Commenting on the development, XDuce CEO Jay Dave said,”We are enthusiastic about this strategic investment, as it signifies a pivotal moment for XDuce. Collaboratively, we aim to enhance and broaden our product offerings, offering businesses and consumers in the US access to state-of-the-art AI-driven technologies for identifying and preventing transaction fraud.”
The deal is part of Infibeam’s plan to ramp up presence globally and bolster its AI play. On the AI front, the company recently appointed former Meesho executive Kumar as the CEO of Phronetic.AI.
In August 2023, Infibeam announced its AI Hub and unveiled plans to launch a slew of products in the space of the emerging technology. As part of this, Phronetic plans to focus on areas such as fintech, financial, retail and enterprise space, and develop AI solutions for fraud detection, authentication, and risk identification (FAR).
It also recently signed an MoU worth INR 2,000 Cr with the Gujarat government for the much-touted AI-Hub.
