Early investors Matrix, Intel Capital and Lightspeed Venture Partners exit the fintech company
US-based global insurance SaaS company Ebix has acquired 80% stake in ItzCash for ` . 800 crore, valuing the Mumbai-based fintech company at about $150 million and giving exits to early investors Matrix, Intel Capital and Lightspeed Venture Partners. Essel Group will own the remaining 20% stake in the company .
ItzCash’s managing director Naveen Surya said the investors received three to four times returns on their initial investments in the company , which was founded in 2006 and had raised about $51million so far.
Nasdaq-listed Ebix is a global supplier of on-demand software and ecommerce services to the insurance, financial, egovernance and healthcare industries and operates in 40 countries, including India.
Surya said the investment will allow the Indian company to cater to Ebix clients beyond India and open cross-selling opportunities to sell each other’s complementary services to clients. “This partnership with Ebix will help us deepen our foray into all kinds of financial servi ces such as credit, insurance, healthcare and investments to accelerate our growth momentum, even outside India,“ Surya said.
ItzCash said it turned profitable in 2016-17. While the company initially started with prepaid card and wallet products, it has since expanded into businesses such as remittances, financial services and corporate pro ducts. The company also has cloudbased solutions at about 75,000 stores across 3,000 cities and towns, where kirana stores also enable bill payments and money transfer. “In ItzCash, we found attributes that none of their peers had -market penetration across 3,000 cities, 75,000 plus bricks-and-mortar distribution outlets, CAGR of approximately 35%, and the only company which was profitable among all its peers. With one of India’s most-prominent business houses, Essel Group, deciding to align their interests with Ebix, the decision to invest in ItzCash became easy for us,“ Ebix CEO Robin Raina said in a statement.
Source : The economic Times