Rediff might raise ₹875cr via an IPO in India
What's the story
Rediff.com, a leading internet company, is exploring various fundraising options, including an IPO, to raise up to ₹875 crore. The funds will be used to expand its enterprise email services, the business productivity suite, and digital payments offerings. Infibeam Avenues Ltd, a financial technology firm, currently holds a majority stake in Rediff.
Evaluation
IPO route likely for capital raise
The board of Rediff.com is currently evaluating various fundraising options, including an IPO, private placement, and private equity participation. According to a PTI report, the IPO route is emerging as the most likely way for the capital raise. Ashish Mehrotra, Senior Vice-President for Corporate Development at Rediff, confirmed that they are exploring different fundraising options but have no specific details to share at this stage.
Strategic investment
Funds to be used for scaling up enterprise services
The funds raised are likely to be used to scale up Rediff's enterprise email and productivity suite, RediffOne, as well as its digital payment solution, the RediffPay. Infibeam has been investing in data centers, AI platforms, as well as sovereign digital services - areas where Rediff is expected to play a strategic role. This comes after the launch of its AI-driven productivity suite last year.