Payments infrastructure company Infibeam Avenues has acquired a majority 54% stake in Rediff.com for up to $3 million, a dramatic turn of fortune for the 28-year-old company that was the first Indian internet company to list on Nasdaq in 2000.
Founded in 1996, Rediff rode the early dot-com boom 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. According to brokerage Jefferies, Rediff generated the most traffic in India, climbing to at least 12th place.
A 2001 Credit Suisse research note on Rediff (Screenshot: Manish Singh/TechCrunch)
The company struggled to adapt to the changing digital landscape in the 2000s and 2010s. With the rise of social media platforms and specialized e-commerce sites, Rediff's broad portal model became increasingly outdated. Despite attempts to diversify its offerings, it was unable to compete effectively with more agile rivals and was eventually delisted from NASDAQ.
Infibeam said on Friday that Rediff still receives more than 55 million monthly visits, and the company plans to leverage Rediff's user base to cross-sell financial products such as loans, insurance and investment advice.
Rediff reported revenue of $4 million for the March quarter.