Rediff, once a pioneer in internet services in India, sells majority stake for $3 million

Payment infrastructure company Infibeam Avenues has acquired a majority 54% stake in Rediff.com for as much as $3 million, a dramatic turnaround for the 28-year-old company that was the primary Indian internet company to be listed on Nasdaq in 2000.

Founded in 1996, Rediff rode the initial dot-com wave to turn into one in every of India’s leading online portals, offering email, news and e-commerce services. At its peak, Rediff was valued at greater than $600 million on the Nasdaq Stock Exchange. It also drove a few of India’s biggest traffic, climbing to at the very least twelfth place, in keeping with brokerage 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media platforms and specialized e-commerce sites became more vital, Rediff’s broad portal model became increasingly outdated. Despite attempts to diversify its offerings, it did not compete effectively with more nimble rivals and was eventually delisted from the NASDAQ.

Infibeam said Friday that Rediff continues to generate greater than 55 million visits monthly. 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 12 months ended in March.