Public party - Part 3

In the third part, a look at e-commerce player Infibeam and antivirus provider Quick Heal

In the fast-growing e-commerce segment, Infibeam has been the first to launch an IPO worth Rs.450 crore. Besides its namesake retail site, the company also has a BuildaBazaar (BaB) market place that provides customisable online storefront solutions. It, however, has a long track record of operating at a loss. According to the draft red herring prospectus, Infibeam made losses from FY12-15. In FY16 though, the company reported profit of Rs.8.7 crore. Is this a turnaround or just a pause? 

Having an e-tail site and a market place under one umbrella can provide synergies when it comes to merchant and customer acquisition. Infibeam has already grown its merchant network close to 50,000 at a CAGR of 273% since 2012. The user base too, has increased at 30% to more than 7.8 million as of March 31, 2015.

But analysts reckon the valuation (7.9x FY15 sales) is “rich” even if the stickiness and higher growth potential of the BaB marketplace is factored in. Analysts at PhilipCapital value the consolidated business at Rs.1,500 crore, which is 5.2x the company’s FY15 sales. Compared to Infibeam, Flipkart, the market leader, is valued at 3.34x its FY15 gross merchandise value (GMV), whil


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