Aurum Deal of the Month – June 2017

US-based global insurance SaaS company Ebix acquired 80% stake in ItzCash for INR 8 billion

The Transaction

In May 2017, Ebix, Inc, a leading international supplier of on-demand software and e-commerce services for insurance, financial, and healthcare industries announced an investment of USD 120 million (INR 8 billion) in the Mumbai-based payment solutions company ItzCash.
Under the terms of the agreement, Ebix will acquire an 80% stake in Itzcash, implying a total enterprise value of approximately USD 150 million for ItzCash. The deal includes an upfront cash payment of USD 76 million and a contingent earn out of up to USD 44 million payable over a period of 3 years. As per analyst reports, the purchase price (including the earn-out) implies a valuation of approximately 4.4X of estimated FY18 revenue.


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. It has over 75 million customers and 1,500 corporate partners (600,000 transactions per day).
ItzCash 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.


Nasdaq-listed Ebix is a global supplier of on-demand software and e-commerce services to the insurance, financial, e-governance and healthcare industries. The company has a market cap of USD 1.7 billion as of June 2017.
Ebix has over 40 offices across Australia, Brazil, Canada, India, New Zealand, Singapore, the US and the UK. It powers multiple exchanges across the world in the field of life, annuity, health and property & casualty insurance while conducting more than USD 100 billion in insurance premiums annually on its platforms.

Transaction View

With the transaction, Ebix gets an entry into India’s prepaid wallets, cards and bill payments space, which is also heavily dominated by existing players such as Paytm, Oxigen and others.
Itzcash will also be able to expand more aggressively going forward. It had deployed 25,000 point of sale machines in the last 5 months, and intends to deploy 100,000 POS machines by the end of the year across the length and breadth of India. Also, ItzCash services can now be expanded to markets like Australia and Brazil where Ebix has a strong distribution expanse.
The transaction will bring complementary functionalities together, to create an integrated Exchange that can process financial, insurance and healthcare transactions for India’s 1.3 billion young and tech savvy population.