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 up to $3 million, a dramatic turnaround for the 28-year-old company that was the first Indian internet company to be listed on the NASDAQ in 2000.

Founded in 1996, Rediff rode the initial dot-com wave to become one of India’s leading online portals, offering email, news and e-commerce services. At its peak, Rediff was valued at more than $600 million on the Nasdaq Stock Exchange. It also drove some of India’s biggest traffic, climbing to at least 12th place, according to 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media platforms and specialized e-commerce sites became more important, Rediff’s broad portal model became increasingly outdated. Despite attempts to diversify its offerings, it failed to compete effectively with more nimble rivals and was eventually delisted from the NASDAQ.

Infibeam said Friday that Rediff continues to generate more than 55 million visits per month. 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 year ended in March.