India’s first listed e-commerce player, Infibeam Incorporation has announced to acquire Snapdeal’s wholly owned subsidiary Unicommerce, a cloud-based inventory management company. It’s a non-cash deal and the deal size is up to Rs 120 crore, where Infibeam will issue optional convertibles preferential shares to Snapdeal.
Unicommerce is a technology company of Snapdeal (Jasper Infotech) that provides warehousing management or inventory management, multichannel, omnichannel and order fulfillment solutions to various businesses across India.
Ahmedabad-based Unicommerce has more than 10,000 sellers as its client that includes brands like Myntra, Jabong, Lenskart, and others.
Both the companies kept the deal a top secret and will hold a board meeting to get the deal approval, as per the sources.
Till date, Jasper Infotech has sold off its three major businesses FreeCharge to Axis Bank, GoJavas to Pigeon Express and Vulcan Express to Kishore Biyani’s Future Supply Chain Solutions. Unicommerce would be one of the last pieces from its kitty to be sold off.
“Unlike others business of Snapdeal, Unicommerce is a profitable business,” said a source.
The people quoted above said that Infibeam was interested in the software of Snapdeal’s warehousing management solution and talks were going on for last several months. In last few years, Infibeam has been on an acquisition spree, wherein it acquired digital payment company – CC Avenue and cloud ERP solutions provider -- DRC Systems. This would be its first acquisition in the FY 2018-19.
Persons in known of the development say that Infibeam which has focused mainly on the backend of the e-commerce businesses, had warehousing management solutions missing from its kitty. It has mobile app & web solutions as well as cloud ERP solutions as part of its BuildaBazaar.com acquired CC Avenue digital payment gateway and has its own digital logistic solution – ShipDroid.
While Infibeam does not compare with Flipkart or Amazon India in scale, it is one of the few profitable e-commerce companies currently in India. Its latest third quarter (Q3) FY2018 results reported a 108% YoY growth in revenue to Rs 213.5 crore ($33.4 million). Its Q3 profit after tax (PAT) also increased 146% YoY to Rs 30.8 crore ($4.8 million). Similarly, its Q1FY18 and Q2FY18 net profit stood at Rs 19.7 crore and Rs 21.6 crore, rise of 45% and 9% respectively.