US headquartered, Ebix, Inc., 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 invested approximately Rs. 800 crores in acquiring a 80% stake in India’s Leading payment solutions Exchange ItzCash. The Company is today recognized as a leader in the prepaid cards and bill payments space, besides being the only payments solutions player out of all its peers, who is profitable today, while having grown at an impressive CAGR of 35% over the last 3 years.
Focus on building a Financial Exchange
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. With an Omni-channel strategy that encompasses a distribution network of 75,000+ physical retail outlets, the Company today is recognized pioneer & leader in this space. With an industry leading transaction success rate of 99% for approximately Rs. 14,000 crores in payment volume, the company processes approximately 600,000 transactions per day.
With 40+ offices across Australia, Brazil, Canada, India, New Zealand, Singapore, the US and the UK, Ebix powers multiple exchanges across the world in the field of life, annuity, health and property & casualty insurance while conducting in excess of $100 billion in insurance premiums annually on its platforms.
“With the youngest tech-savvy society, the largest middle class, a 1.3 billion population, a country committed to going digital and a growth rate of 7% plus, India is an emerging economic superpower today. We are big believers in the power of exchanges and thus have been keen to take an early position in India in terms of powering financial and insurance exchanges.” Ebix Chairman, President and CEO Robin Raina said. “In ItzCash, we found attributes that none of their peers had – market penetration across 3000 cities, 75000 + brick & mortar distribution outlets, CAGR of approximately 35%, and the only company who was profitable amongst all its peers. 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.”
Naveen Surya, Managing Director, ItzCash said, “We are thrilled to be associated now with a world-leading exchange like Ebix and the opportunities that Ebix’s new investment in ItzCash offers us. This is a testament to our belief and roadmap for growth to deliver comprehensive financial services across emerging India. Having established our leadership across Payments, Remittances and Corporate Solutions already we will deepen our foray in areas of credit, insurance, healthcare and invesments. We will continue to invest in our distribution network and technology providing a fully integrated Financial Exchange.”
Driving Diversified Growth with Profitability
Founded in 2006, ItzCash is India’s largest digital payments firm, the company has since expanded into new businesses verticals such as remittances, financial services, corporate solutions, PoS and Payment gateway ensuring a diversified revenue stream. With the new investment by Ebix, the Company is looking to foray into areas such as credit, insurance, healthcare and investments to accelerate growth momentum going forward.
Bhavik Vasa, Chief Growth Officer, ItzCash elaborates on their journey so far. ”Our ethos lies in creating a PhyGital network – digital cash with physical confidence and reach. For over 10 years, we have always focused on digitising physical cash and empowering digital commerce. We will continue to focus on bridging and connecting the larger segment of the aspiring Bharat with our multi-product, Omni-channel strategy”.
At present, the company has partnerships with Visa, RuPay, and MasterCard and banks such as HDFC Bank, Kotak and RBL Bank. It works closely with corporates such as Amway, DishTV, Flipkart, BookMyShow, Uber, OYO rooms, IRCTC, Satin MicroFinance and more, helping them acquire net new customers by making products available at the middle of the pyramid.
“Ebix’s global reach and operations opens International expansion opportunities for ItzCash. We are keen to replicate our proven model, technology platform and operating experience to other emerging markets for financial services” added Naveen Surya.
Ebix; Complementary Strengths, Synergies and International Expansion
- The investment by Ebix, tends to bring complementary functionalities together, to possibly create a unique integrated Exchange that can process financial, insurance and healthcare transactions for India’s 1.3 billion population that today is seen as the youngest, tech-savvy country with approx. 65% people approaching the age of 35.
- 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 a online super highway and a brick & mortar set up of 75,000+ distribution outlets.
- It offers insurance carriers and brokers a gateway into reaching out to this vast network described above, helping create new integrated insurance and finance offerings.
- Having deployed 25,000 point of sale machines in the last 5 months, the Company intends to deploy 100,000 POS machines by the end of the year across the length and breadth of India
- A world-class service and support organization benefiting from the best practices and infrastructure investments of both companies.
- Cross-selling opportunities to sell each other’s complementary services to existing clients of the two companies.
- It offers the opportunity to expand the ItzCash services to markets like Australia and Brazil where Ebix has a strong distribution expanse.
Image : Bhavik Vasa – Chief Growth Officer, ItzCash