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Payments infrastructure firm Infibeam Avenues has acquired a majority 54% stake in Rediff.com for up to $3 million, a dramatic twist of fate for the 28-year-old business that was the first Indian internet firm to list on NASDAQ back in the year 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 over $600 million on the Nasdaq stock exchange. It also drove some of the largest traffic in India, climbing at least up to the 12th spot, according to brokerage house Jefferies.
A Credit Suisse research note from 2001 about Rediff (Screenshot: Manish Singh/TechCrunch)
The company struggled to adapt to the evolving digital landscape in the 2000s and 2010s. As social media platforms and specialized e-commerce sites gained prominence, Rediff’s broad portal model became increasingly obsolete. Despite attempts to diversify its offerings, it failed to compete effectively against more nimble rivals and eventually delisted from NASDAQ.
Infibeam said Friday that Rediff still drives more than 55 million visits each month. It plans to tap Rediff’s user base to cross-sell financial products including loans, insurance and investment advisory.
Rediff reported $4M in revenue in the financial year ending in March.
