Avenues AI Targets 12-15% International Payment Revenue Share By FY28

Market snapshot: AvenuesAI Limited (formerly Infibeam Avenues) has outlined a strategic international expansion plan, targeting international operations to contribute 12% to 15% of its payment net revenue by FY28. The company's GCC operations are currently led by active markets in the UAE and Oman, with plans to expand further into Saudi Arabia, the US, and Australia.

Data Snapshot

• AvenuesAI targets international operations to account for 12% to 15% of payment net revenue by FY28.
• Q1 FY27 operating revenue grew 109.4% YoY to ₹2,680.4 crore, while Profit After Tax (PAT) increased 45.1% YoY to ₹84.76 crore.
• FY27 consolidated revenue guidance is set at ₹11,000 crore to ₹13,000 crore, with targeted EPS of ₹8.75 to ₹9.50.

What's Changed

• Operating revenue for Q1 FY27 reached ₹2,680.4 crore, indicating a 109.4% year-on-year growth compared to ₹1,280 crore in Q1 FY26.
• Net Profit (PAT) for Q1 FY27 rose to ₹84.76 crore, representing a 45.1% year-on-year growth from ₹58.4 crore in the prior year's corresponding quarter.
• AvenuesAI's international expansion strategy now centers on managing all businesses outside India from its UAE subsidiary.

Key Takeaways

• Strategic target of 12-15% international contribution to net payment revenue by FY28 to build a diversified earnings engine with dollar-denominated revenue.
• Active international footprints established in the UAE and Oman, with Saudi Arabia targeted for full operations in FY26.
• Expansion plans mapped for the US and Australia in FY27, followed by Southeast Asia in a 3-to-5 year phased rollout.
• AvenuesAI is evolving its business model beyond pure payments scale to higher-value streams, including consumer/enterprise solutions via Rediff and AI initiatives like TISco.

SAHI Perspective

AvenuesAI's pivot toward international markets is a key margin-optimisation strategy. While the Indian market provides immense transaction volume scale, payment economics in countries like the US and the GCC region offer substantially higher net take rates and dollar-denominated revenues. Managing international operations via the UAE subsidiary provides structural and regulatory efficiencies. Simultaneously, the company's rebranding to AvenuesAI underscores a shift from a transaction-heavy processing model to a high-margin financial intelligence and AI-led fintech infrastructure enterprise.

Market Implications

The international diversification reduces geographic risk and positions the company to tap into high-yield enterprise merchant segments. If executed successfully, the 12-15% international revenue share could significantly boost consolidated EBITDA margins, which contracted to 4.8% in Q1 FY27 from 7.6% in the prior year due to rapid operational expansion. A successful rollout in the US and Saudi Arabia will be critical to proving the scalability of its CCAvenue infrastructure internationally.

Trading Signals

Market Bias: Bullish

Strong operating leverage is visible with Q1 FY27 revenue doubling to ₹2,680.4 crore and PAT rising 45.1% to ₹84.76 crore. Strategic expansion into higher-margin international markets like the UAE, Oman, and the US can expand profitability and mitigate domestic margin pressures.

Overweight: Digital Payments, Fintech Infrastructure

Trigger Factors:

• Receipt of full Category III Retail Payment Services License from the Central Bank of the UAE.
• Operational launch of payment processing services in Saudi Arabia in FY26.
• Progress on the enterprise rollout and pricing economics in the US market in FY27.

Time Horizon: Medium-term (3-12 months)

Industry Context

The Indian digital payment gateway industry is highly competitive, with thin margins on domestic transactions. Payment aggregators are increasingly looking at cross-border transactions and high-yield international markets to improve take rates. AvenuesAI (CCAvenue) ranks among India's top 3 B2B payment gateway players and has quickly scaled to become the second-largest non-bank private digital payment company in the UAE within 18 months of entry, validating its international playbook.

Key Risks to Watch

• Slower-than-expected merchant onboarding in new markets like Saudi Arabia and the US.
• Integration and monetization risks associated with non-core assets like Rediff.com.
• Regulatory hurdles and compliance costs in foreign jurisdictions (e.g., US and Australia).
• Input cost and operational expense volatility, which led to an EBITDA margin contraction to 4.8% in Q1 FY27.

Recent Developments

In Q1 FY27, AvenuesAI's step-down subsidiary, Avenues World FZ LLC, received in-principle approval from the Central Bank of the UAE for a Retail Payment Services – Category III License. In India, the Reserve Bank of India authorized GoWallet (owned by AvenuesAI) to operate Prepaid Payment Instruments (PPI). Furthermore, the company acquired an additional 9.90% stake in Neuromind Technologies and announced plans to acquire stakes in Ratnaafin Capital and Online PSB Loans to build an AI-led embedded lending ecosystem.

Closing Insight

AvenuesAI's transition from a volume-driven payments gateway to an international, AI-first financial technology platform is a bold move. With active engines in the UAE and Oman and a clear target of 12-15% international contribution by FY28, the company is positioning itself for quality of earnings rather than just transaction scale.

High Performance Trading with SAHI.