Infibeam Avenues, a payments infrastructure firm, has acquired a majority 54% stake in Rediff.com for a potential $3 million
This is a significant development for the 28-year-old business, the first Indian internet firm listed on NASDAQ in 2000.
Rediff, established in 1996, capitalized on the initial dot-com surge to establish itself as one of India’s premier web portals, providing email, news, and e-commerce services. The Nasdaq stock exchange valued Rediff at more than $600 million at its zenith. Additionally, it generated some of the most significant traffic in India, ascending to at least the 12th position, as per Jefferies, a brokerage firm.
In the 2000s and 2010s, the organization encountered significant challenges adjusting to the changing digital environment. Rediff’s broad portal model became increasingly obsolete as social media platforms and specialized e-commerce sites gained prominence. It was ultimately delisted from NASDAQ due to its inability to effectively compete against more agile competitors despite efforts to diversify its offerings.
Rediff continues to generate over 55 million monthly visits, according to Infibeam on Friday. It intends to leverage Rediff’s user base to create cross-selling opportunities for financial products like insurance, investment advisory, and loans.
In the fiscal year that concluded in March, Rediff generated $4 million in revenue.