EBIXCASH Limited is a technology-enabled provider of digital products and services in the B2C, B2B and financial technology arena through an integrated business model, with leadership positions in key businesses that it operates. The company organizes its business along with four primary business segments, (i) payment solutions, (ii) travel, (iii) financial technologies and (iv) business processing outsourcing (“BPO”) services and start-up initiatives. The company focuses on the convergence of financial exchange channels, processes and entities and is a comprehensive platform, where it aims to serve its customers’ needs, bringing together the advantages of B2B, B2C and B2B2C models within a single platform.
EbixCash provides a variety of products in India and in over 75 international jurisdictions, including (i) front-end focused domestic and international money remittance, foreign exchange (“Forex”), pre-paid gift cards, utility payments, Aadhaar Enabled Payment Services (“AEPS”) services, PoS services, ticketing services; and (ii) back-end focused SaaS and self-hosted solutions for the financial sector including lending and wealth management operations, bus exchange technology, insurance and healthcare technology.

The Offer is a Fresh Issue. The Fresh Issue aggregates up to ₹60,000 million. Out of the net proceeds from the fresh issue, ₹10,350.26 million would be used for Funding the working capital requirements of its subsidiaries, ₹ 27,475.67 million would be used for purchase of outstanding compulsorily convertible debentures from Ebix Mauritius which were issued by certain of its subsidiaries and payment of interest on such outstanding compulsorily convertible debentures, and the balance would be used for Funding strategic acquisitions and investments and general corporate purposes.

The company’s revenue from operations has increased from ₹18,883.29 million in FY19 to ₹41,525.33 million in FY21. The company’s EBITDA decreased from ₹6,245.22 million in FY19 to ₹5,117.29 million in FY21 while PAT decreased from ₹4,595.31 million in FY19 to ₹2,300.49 million in FY21.

EBIXcash is one of the largest multicurrency card sellers in India. As it gets ready for its IPO, let’s explore entities on the stock markets that work in similar segments

EbixCash provides products and services through an integrated business model, encompassing its four primary business segments i.e. being payment solutions, travel, financial technologies and BPO services and start-up initiatives. With the necessary licenses to operate, it focuses on the convergence of financial exchange channels, processes and entities and is a comprehensive platform for financial, business, travel and payment use cases. At the core of its business strategy is the centralization of Human Resources (“HR”), finance, administration, information technology, among others, through an in-house enterprise application, which mandates audit trails and approval processes digitally. So, this allows the company to run its businesses efficiently and with continued controls and predictability, and translates into an integrated approach for its clients. The company serves its customers’ needs across their entire digital journeys, bringing together the advantages of B2B, B2C and B2B2C models within a single platform. EbixCash omni-channel approach through online and offline distribution networks provides clients, corporates and end-users with a broad range of services through its platform. Within this approach the company develops, deploys and typically has end-to-end control over all aspects of such products, including the technology and customer experience such that it provides many touch points for the consumer and back-end entities, ensuring high levels of stickiness.

EbixCash operates in regulated industries, such as payment solutions, forex, remittance, bill payments, insurance and travel, and as such are required to obtain and maintain certain licenses. As of December 31, 2021, the company had licences to operate in payment solutions, forex, remittance, and bill payments. Accordingly, there are high barriers to entry for new entrants in these industries. Licenses require significant time to acquire, and are subject to approval by the relevant regulatory authorities. In addition, it has a large “phygital” distribution network that combines its agent network of more than 650,000 locations throughout India and Southeast Asia with a digital omni-channel online platform for all of its offerings. This results in a business model that could be difficult to replicate, spanning multiple industries, and which is intended to provide a smooth customer experience regardless of product or service.

EbixCash’s ability to bring together the advantages of B2B, B2C and B2B2C models within a single platform, along with its digital capabilities, provide many touch points for the consumer and back-end entities, ensuring high levels of stickiness. This, coupled with its wide range of digital products and services that complement each other, results in multiple cross-selling and upselling opportunities, synergies, network effects and wide reach for customer acquisition. Due to its ability to cross-sell various complementary products and services, in addition to its presence in multiple industries, the company typically has low marketing and business promotion expenses and thus, improved opportunities for profitability and unit economics metrics. Accordingly, it has a high operating leverage business model, allowing the company to reduce customer onboarding costs over time.

EbixCash provides certain proprietary technologies to its clients that are flexible and customizable across a variety of functionalities and customer requirements, including within its wealth, asset and lending management offering, Insurance services, as well as its bus exchanges and travel platforms. The company is a technology agnostic company that has adopted the latest tools in software development from a wide variety of software platforms without conforming to any one software platform. It has adopted SaaS and over the cloud on demand services as a core part of its business model and technology path. The company’s products work across all hand-held devices, PCs and Apple platforms with the graphic user interface conforming to the device that is being used by the end user, using boot-strap technology. It offers open architecture tools to allow clients’ platforms to be integrated with various outside services, for which the customization is carried out by its in-house developers.

EbixCash has a history of acquiring complementary businesses and integrating with them into its eco-system such that through leveraging its approach to centralizing costs, compliance and internal systems, the company is able to achieve growth and improved performance of the newly acquired business.

Any disruption of its internet connections, including to any third-party cloud providers, could affect the success of its internet-based products and services and certain parts of its physical distribution.
Stringent and changing laws and regulations relating to privacy and data protection could result in claims, harm its results of operations.

India’s Internet Penetration Likely to Reach Approximately 75% by the Financial Year 2025 led by 4G, Fiber To The Home (“FTTH”) Services and hence, increased internet connectivity is likely to drive growth for the company.
Domestic spends is likely to rebound in the Financial Year 2022 where digital initiatives and BFSI is likely to drive growth.

Cybersecurity threats continue to increase in frequency and sophistication. A successful cybersecurity attack could interrupt or disrupt its information technology systems or cause the loss of confidential or protected data, which could disrupt its business.
Any disruption to the supply of air, train and bus tickets, and reduced demand for hotel accommodation and related services or other travel elements, or an increase in the prices of travel elements could adversely affect its operation and profitability.

EbixCash aims to continue growing each of its business segments and with a particular focus on its cross-selling strategies, which will further entrench its value proposition with its customers and is consistent with mission to serve its customers’ entire digital journey in a comprehensive manner by merging all its product and service functionalities into a single ecosystem. While the company already has strong market positions in each of its four primary business segments and others, there is continued scope for expansion given the growing demand for the various products and services the company offers and in particular, the growing demand for digital products and services in India alone. It endeavours to continue to increase the engagement and retention of its customers on its platform by offering them relevant, innovative and integrated products.

While EbixCash continues to innovate and provide improved products and services to its consumers in India, the company believes there is a significant opportunity for the company to leverage its technology infrastructure, broad product portfolio and reputation to expand further into international markets. In particular, the company plans to expand its payment solutions and financial technologies business segment offerings into new locations, including Indonesia, the Middle East, Europe, and the Philippines. It is aiming to do so within the next two years. To expand its Payment Solutions offering, the company plans to launch a payments gateway and additional integrated products, further adding value to its customers and increasing its ability to monetize its existing ecosystem.

EbixCash endeavours to continue growing its bus exchange offering across India, to provide more efficient services to travellers, in-bus solutions such as passenger infotainment, passenger counting, onboard GPS and bus depot and office solutions such as fuel management, HR management, and transport analytics. It has successful experience in designing, developing, building, installing, maintaining, operating and transferring Intelligent Transport Management Systems for state buses run by state transport corporations in fourteen states.

EbixCash endeavours to expand its ecosystem by participating in new business lines to add value to its customers and increase its ability to cross-sell. The company will further strengthen its travel offerings by launching a destination management company, that would provide services to handle the consumer’s travel requirements in the country they are visiting, without using third party providers

EbixCash has a successful track record of having implemented acquisition strategies to enter complementary businesses or to enter new geographies. The company intends to continue making accretive acquisitions in geographies of interest and in complementary business areas, while centralizing all its core functionalities, to facilitate efficiencies and cross selling opportunities.

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