Anika Begay
Payments infrastructure firm Infibeam Avenues has acquired a 54% majority stake in Rediff.com for $3 million, a dramatic turn of events for the 28-year-old company that was the first Indian Internet company to list on the NASDAQ in 2000.
Founded in 1996, Rediff rode the initial dot-com wave to become one of India’s leading web portals, offering email, news and e-commerce services. At its peak, Rediff was valued at more than $600 million on the Nasdaq stock exchange. It also drove some of the most traffic in India, climbing to at least 12th place, according to brokerage firm Jefferies.
The company struggled to adapt to the changing digital landscape in the 2000s and 2010s. As social media platforms and specialized e-commerce sites gained popularity, Rediff’s broad portal model became increasingly obsolete. Despite attempts to diversify its offerings, it failed to compete effectively with more nimble rivals and was eventually delisted from the NASDAQ.
Infibeam said Friday that Rediff continues to generate more than 55 million visits a month. It plans to leverage Rediff’s user base to cross-sell financial products, including loans, insurance and investment advice.
Rediff reported revenue of $4 million in the fiscal year ended March.
