“They [Infibeam] are trying to compete with ShopClues, and that company is struggling because people in India want to buy new products at a discount, and all the e-commerce companies are struggling,” said Satish Meena, senior forecaster, forester, market research firm. And according to people in the ShopClues business, it costs upwards of 1,000 rupees ($ 14.5) to acquire each customer. Infibeam costs almost nothing. So, how does it get customers?
“We will contact all banks and ask them to send customers who have accumulated loyalty points and we will make sales that way,” Mehta said.
But this statement does not stand up to scrutiny. Loyalty Rewardz Bijay Jayaraj, founder and former CEO of India’s largest loyalty points firm, said: “Infibeam has never been involved in shooting any accumulated points.
Now the question to ask is: Do customers really visit Infibeam.com?
The average time spent by each customer is interesting. On Amazon, a customer spends between eight and nine minutes on a website. In Infibeam, it’s more than just three. This means that within three minutes, a customer has to find the product, pay for it, and close the tab.
Ask one long
Now, with this information, let’s take a closer look at the number of Infibim revenue. The company did not mention it in its annual return, but in an email query, Infibeam claimed that GMV was the only revenue earner in the e-commerce business. This is Rs 298 crore. So, the actual revenue the company earns in this business is much less than it looks.
“We do a lot more on the net because it’s the tail,” Mehta said. The company declined to disclose the actual number. Suppose this is 10%. That means revenues close to Rs 30 crore (~ 4.5 million). The actual image for its e-commerce business is very different from what it looks like.
Responding to an email query by The Kane in response to an email query from The Can: Founder and managing proxy advisory firm ias Airektar Amit Tandon said.
The stock market also behaves differently.
From its inventory, Infibeam’s share price is up north and has appreciated two and a half times since 8 April 2016. This was possible without significant fluctuations in trading volumes. But these trading volumes raise some questions.
2 Market 2 Capital PMS Managing Partner Amit Mantri said, “Every company with a significant market cap has significant fluctuations in volumes due to market and company level factors. “It’s rare for a company to have volumes like this for long periods of time, even when the rest of the market is in chaos.” The Minister highlighted this on Twitter in February 2017. Even in the case of demonetization, when the entire market is in panic, Infibim’s trading volumes remain unchanged.
“When a large company has very little volatility in volumes, the reason is that the stock is controlled by small investors who work together,” the minister said. According to Infibeam’s latest filing on BSE, only 63 entities (47 persons with a share capital of more than Rs 2 lakh (~ $ 3,000) and 16 shareholders in the promoter and promoter group) own nearly 74% of the company.
Also, for such an exceptional running stock, the daily delivery volume of Infibim shares is in the 10-20% range. For a listed company, in each trading session, the stocks contain the total traded volume and delivery volume. The delivery percentage of the total traded volume is actually shares that are sent to a person’s demat account. The remaining trading volume is intraday trades, which are squared in a single trading day.
“Although we do not see market data [trading volumes, etc.], low delivery is a reflection of high ulation risks and shortages of long-term buyers. This can cause scrips instability and wild swings are common in such stocks, ”says Tandon.