Fintech startup Infibeam Avenues has sped up plans to establish an in-house ecosystem to fuel the company’s artificial intelligence (AI) ambitions.
In a statement, the company said its subsidiary has acquired a piece of land in Ahmedabad that will serve as the extension of Infibeam Avenues Ltd’s planned GIFT City AI HUB.
In August, the company announced the establishment of the country’s first AI HUB at Gujarat International Finance Tec-City (GIFT City) and said it would invest an undisclosed amount of capital over the next three years to build the hub.
The Ahmedabad campus will house the company’s own team, as well as other AI and tech businesses backed by the company. The move will enable Infibeam Avenues to synergise the operations and leverage strengths of the two ecosystems to build innovative products.
On one hand, AI and tech startups will get access to dedicated space at the AI HUB. On the other hand, Infibeam Avenues will be able to leverage the specialised products and services offered by these budding platforms to enhance the fintech giant’s AI operations. The payments solutions company will also offer mentorship and a ‘comprehensive support system’ to these small startups to scale operations.
In addition, the Ahmedabad-based company also expects to leverage significant benefits from the IT/ITeS Policy 2022-27 recently introduced by the Gujarat government. Under this initiative, Infibeam Avenues is eyeing a ‘plethora’ of incentives and advantages, and will look to secure a one-time capital expenditure (capex) support of up to INR 200 Cr.
“We are focusing on cultivating a harmonious AI and tech self-sufficient and symbiotic ecosystem, one that will not only bolster Infibeam’s expansion within the AI and software development sector but also nurture the emergence of independent AI and technology enterprises in India,” said Infibeam Avenues’ chairman and managing director Vishal Mehta.
It is pertinent to note that Infibeam Avenues has acquired the partially constructed Sintex Corporate House from Aditya Birla Group-owned Aavas Trust. Spanning an area of nearly 76,250 square feet which also includes the under-construction structure, the piece of land was bought by Infibeam Avenues for a cumulative sum of INR 100 Cr.
Mehta said the land acquisition represents a key step in the establishment of ‘enduring’ AI ventures that cater to both domestic and global markets in the fraud detection space.
The announcement is part of Infibeam Avenues’ plans to emerge as a key player in the AI-based fraud detection and prevention market In August, the company said it will deploy AI and machine learning algorithms, at the outset, to detect fraudulent activities in online transactions on a real-time basis.
In the long term, the fintech company plans to build tailor-made fraud detection and prevention solutions for both government agencies as well as the private sector. This will be achieved through the company’s dedicated AI vertical business unit called FAR (Fraud Detection, Authentication, and Risk Identification).
The announcement came on the same day as Infibeam Avenues reported a 191% jump in its profit after tax (PAT) to INR 38.3 Cr in the second quarter (Q2) of the fiscal year 2023-24 (FY24). Meanwhile, operating income soared 66% year-on-year (YoY) to nearly INR 790 Cr in the quarter under review.
Shares of Infibeam Avenues ended Thursday’s session 3.58% higher at INR 19.65 on the BSE.
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