Under the terms of the agreement, ItzCash was valued at a total enterprise value of approximately INR 967.The Company is a leader in the utility payment space serving as a payment exchange for large utility providers like BSES, Tata Power, NDPL, Reliance Energy and Mahanagar Gas etc. With one of India’s most prominent business houses, the Essel Group deciding to align their interests with Ebix, the decision to invest in ItzCash became easy for us.com, Croma, Lifestyle, Big Bazaar, Tanishq, BookMyShow. ItzCash processes approximately 600,000 transactions per day and approximately INR 12,894.An opportunity to expand the ItzCash technology and services to markets like Australia and Brazil where Ebix has a strong distribution capability.000 Transactions per DayNew Delhi– Ebix, Inc.1 crore in annual payment volume, with an industry leading transaction success rate of 99%.”“Ebix’s global reach and operations opens International expansion opportunities for ItzCash.
With an Omni-channel strategy that encompasses a distribution network of 75,000+ physical retail outlets, the Company today is recognized as a leader in the prepaid cards and bill payments space. The acquisition is expected to be accretive to Ebix earnings within the next 6 to 9 months. With approximately 65% of its population below the age of 35, India represents the world’s youngest and most tech-savvy market.Key StrengthsWith a retail distribution network of 75,000+ distribution outlets spread across 3,000 cities in the country, ItzCash can address the needs of consumers in far flung areas that no other peer company has been able to reach. We are keen to replicate our proven model, technology platform and operating experience to other emerging markets for financial services” added Naveen Surya.
The Company has a similar portfolio of blue-chip clients in other sectors like DTH, mobile, telecom, money remittance, shopping and entertainment etc.ItzCash Corporate, Campus and Government solutions include – Corporate gifting, cash management, purchasing, Travel bookings, incentives awards, payroll expense, Government benefits and a wide variety of solutions for the Campus, Health and Club sector.Cross-selling opportunities to sell each other’s complementary services to existing clients of the two companies.com, Café Coffee Day, Pizza Hut, Myntra.Complementary Strengths and SynergiesThe acquisition of ItzCash by Ebix bring together complementary functionalities and the opportunity to forge a unique integrated Exchange to process financial, insurance and healthcare transactions for India’s 1. Having established our leadership across Payments, Remittances and Corporate Solutions already, we will deepen our foray now in the areas of credit, insurance, healthcare.”ItzCash Managing Director Naveen Surya said, “We are thrilled to be associated with a world-leading exchange like Ebix and the opportunities that Ebix’s new investment in ItzCash offers us. The closing date of the transaction was May 23, 2017.Having deployed 25,000 point of sale machines in the last 5 months, the Company plans to deploy 100,000 point of sale wireless machines across the country coupled with its 75,000+ strong distribution network, providing a unique ability to serve as ATM outlets for payment withdrawal in small cities and rural areas where there is a paucity of ATM machines.
After a detailed due diligence and transaction support led by EY, Ebix decided to retain the entire management team led by the Managing Director of ItzCash Naveen Surya. ItzCash is recognized as a leader in the prepaid cards and bill payments space in India, besides being the only profitable payments solutions provider out of all its peers, while having grown at a CAGR of 35% over the last 3 years.Market in India via Acquisition of 80% Stake in Fast-Growing ItzCashItzCash Exchange Encompasses 75,000+ Distribution Outlets, 1500+ Corporate Partners and 75+ Million Consumers, Processing over 600. This assumes specific importance considering that more than 80% of transactions in the country are still cash based and only 53 urban cities have a population of more than one million people.97 crore and a contingent earn out of up to INR 283.The Company’s clients in the travel booking area include leading players like IRCTC, Yatra.”Robin added, “We believe that the synergies between Ebix and ItzCash are at multiple levels and the ItzCash exchange when complemented with Ebix’s portfolio of insurance healthcare services along with our international scale, will set the foundations of a very powerful and scalable business opportunity. With Ravi Singh as Chief Business Officer, Dayton Creado as CTO, and Bhavik Vasa as Chief Growth Officer leading the Company’s growth initiatives across multiple channels, the Ebix Essel group joint venture intends to empower this highly experienced trio of seasoned senior executives, under the leadership of Naveen, to power ItzCash to become India’s largest Financial Exchange, with integrated offerings for insurance, healthcare and telemedicine.
Naveen Surya also serves as the Chairperson for the Payment Council of India, an industry association for non-bank payment entities.com, Reliance Digital, MakeMyTrip.3 billion population, a country committed to going digital and a growth rate of 7% plus, India is an emerging economic superpower today. This is a testament to our belief and roadmap for growth to deliver comprehensive financial services across emerging India. “In ItzCash, we found attributes that none of their peers had – market penetration across 3000 cities, 75,000+ brick mortar distribution outlets, a CAGR of approximately 35% and the only company who was profitable amongst all its peers.The Company is recognized as a leader in the Gift card space with brand gift cards across all categories with 100+ Brand copartners like Amazon, Flipkart.67 crore payable over a period of 3 years from closing.3 billion population.ItzCash will provide insurance carriers and brokers a gateway to reach India’s vast population with new integrated insurance and finance offerings.ItzCash retail offerings include – Shopping, Utility bill payment, Travel bookings, Cinema bookings, Prepaid gift cards, money remittance, insurance premium payment, property tax payment, Direct to Home (DTH) Cable Satellite and Mobile payments etc.
A leading driving force in the digitization of cash across India, ItzCash is a Financial Exchange for payment solutions that connects 75+ million consumers and 1,500+ corporate partners on its integrated payments solutions superhighway. Accordingly, Ebix acquired an 80 percent stake in ItzCash for INR773.“With the youngest tech-savvy society, the largest middle class, a 1. The Company funded the transaction using internal cash reserves from its Indian and Singapore subsidiaries.64 crore including upfront cash of INR489. We are big believers in the power of exchanges and thus China constant power cable Suppliers have been keen to take an early position in India in terms of powering financial and insurance exchanges,” said Ebix Chairman, President and CEO Robin Raina. (NASDAQ: EBIX), a leading international supplier of On-Demand software and E-commerce services to the insurance, financial, e-governance and healthcare industries, today announced that it has entered into a joint venture with India-based Essel Group, while acquiring an 80% stake in ItzCash, India’s leading payment solutions Exchange. We will continue to invest in our distribution network and technology, providing a fully integrated Financial Services Exchange.com, redbus.Ebix’s telemedicine, world leading health content exchanges, continuing education and health wellness solutions can be offered now in an integrated manner, creating a healthcare offering that could be accessed by millions of consumers, 1,500+ corporate partners through an online super highway and a brick mortar set up of 75,000+ distribution outlets.ItzCash has the most expansive spectrum of payment solutions in the country, targeted at the Retail, Government, and Campus and Corporate sectors.