Ebix, US-based software solution provider has acquired 80% of stakes of Itzcash, payments firm, for Rs 800 crore.
This deal has been completed when digital payment business has aroused the interest of investors especially financial and strategic investors. The deal would esteem the Mumbai-based organization at Rs 1,000 crore.
Transaction would hurt several investors
The deal with show exit door is to the existing investors Matrix Partners, Lightspeed Venture Partners and Intel Capital. The three collectively held one-third of the company’s shares. If sources were to be believed, the investors have made 3-5 times their initial investment in the company with their total collective profit being $45 million.
What happened to remaining stake
Essel group and other management team collectively sold the remaining stake and they will now hold 20% of the stake after fresh funding.
Itzcash has established in 2006 as a multi service prepaid card organization and last year it had claimed Rs 240 crore of revenues.
AS per Nasdaq-recorded report, market capitalization value of Ebix is $1.7 billion. Additionally, it has invested in several Indian organizations like fintech startup Finly and Healthcare Magic.
It will deepen its service in several other arenas
According to a statement of Naveen Surya, managing director at Itzcash, “Having established our leadership position across payments, remittances and corporate solutions, we will deepen our foray in to areas of credit, insurance, healthcare and investments. This partnership and their experience in financial services will help us become a platform for a lot of financial services products”.
About company’s growth and customers
Company also revealed that it has achieved a growth of 40% as compared to the last three years. It has put resources into making a state of sale network across the entire country after demonetization. It affirms that it has been serving 75 million clients and has almost 75,000 outlets in 3,000 urban areas.
Company will take special place: Chairman of Ebix
Robin Raina who is the chairman and president at Ebix said that, “With a young population and a large middle class, we believe that Ebix should take an early position in India in terms of powering financial and insurance exchanges”.
Company’s vision and association
Itzcash is seeking for global aspirations after the Ebix associations. Bhavik Vasa, chief growth officer, said that it has taken after an omni-channel (physical and advanced) system for development in urban areas and smaller towns.
It has associated itself with MasterCard, Visa, RuPay, and banks, for example, HDFC, RBL, Kotak for issuing different cards. It is also associated with corporate like DishTV, Amway, Flipkart, Uber, BookMyShow, IRCTC and OYO rooms.