AvenuesAI Q2 Revenue Jumps 47% as AI-First Fintech Transformation Gathers Momentum
AvenuesAI reports a 47% surge in Q2 revenue as it pivots from a payment gateway to an AI-first fintech infrastructure platform.
AvenuesAI Limited has announced a strong set of financial results for the second quarter of FY27, signaling a successful pivot from a traditional payments gateway business toward becoming an AI-first financial technology infrastructure platform. The company reported a significant 47% year-on-year increase in consolidated revenue from operations, which climbed to Rs 2,879.24 crore for the September quarter.
While revenue saw a massive spike, the profit after tax for the quarter grew by 6%, reaching Rs 71.70 crore, according to the filings on the BSE.
Strong Half-Year Performance
The momentum extended across the first half of the fiscal year (H1FY27). During this period, consolidated revenue from operations surged by 71% to reach Rs 5,559.64 crore. Profit after tax for the first six months grew by 24%, totaling Rs 156.47 crore. Additionally, the operating EBITDA (excluding other income) stood at Rs 198.90 crore, marking a 19% increase compared to the previous year.
This growth comes at a time when the company is leveraging the scale of its core brand, CCAvenue, to venture deeper into enterprise technology, digital payments, and AI-driven financial intelligence.
Navigating the Payments Landscape
Despite the impressive top-line growth, AvenuesAI is navigating a challenging environment characterized by intense pricing pressure in the payments sector. CCAvenue, the foundation of the company's franchise, saw its quarterly payment processing value rise by 19% sequentially to approximately Rs 1.77 lakh crore.
However, the net take rate moderated to 5.06 basis points, a reflection of the heightened competition within the Indian payments market. Addressing this, Vishwas Patel, MD and CEO of AvenuesAI Limited, emphasized that the company is shifting its focus away from a sole reliance on transaction fees.
"Our strategy is to deepen the relationship with our customers and build a larger ecosystem around them," Patel stated. "Payments remain central, but the real opportunity lies in offering complementary services that create recurring value for merchants and enterprises."
Three Strategic Pillars for FY27
AvenuesAI has outlined three primary priorities to drive its next phase of growth:
1. Unlocking the Value of Rediff.com
The company is integrating Rediff.com into its digital stack to expand its reach across both consumer and enterprise services. This integration involves two key components:
- RediffOne: Positioned to handle enterprise communication, commerce, and digital service needs.
- RediffPay: Aimed at expanding the company's footprint in consumer payments.
Management believes that combining Rediff's assets with CCAvenue will diversify revenue streams and improve overall customer economics.
2. Global Expansion
AvenuesAI is aggressively pushing CCAvenue into international markets. The company already maintains operations in Saudi Arabia, the UAE, and Australia, with the United States now emerging as a top priority. It also operates in Oman through strategic banking partnerships. While the company acknowledges that local market economics and compliance will require constant attention, it views the international segment as a future major contributor to its growth.
3. AI-Led Intelligence via TISco
The company is developing TISco, an AI-led transaction intelligence initiative. TISco is designed to utilize permitted transaction and merchant-behavior data to build high-value applications for:
- Fraud detection and risk assessment.
- Merchant intelligence.
- Financial decision support.
If successful, TISco could propel AvenuesAI into higher-margin technology services, though the company noted that data-use compliance and market adoption will be critical factors.
Expanding the Ecosystem
AvenuesAI's ambition to dominate the fintech space is further evidenced by its strategic investments in Ratnaafin Capital Private Limited and Online PSB Loans Limited, signaling a broader interest in the evolving financial services ecosystem.