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EbixCash Limited IPO Company Profile:

EbixCash Limited is a technology-enabled provider of digital products and services in the B2B, B2C, and financial technology arena through an integrated business model, with leadership positions in key businesses that the company operates. The company organizes its business along four primary business segments, (i) payment solutions, (ii) financial technologies, (iii) travel, 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 the company aims to serve the customers’ needs, bringing together the advantages of B2B, B2C, and B2B2C models within a single platform.

EbixCash Limited utilizes a “phygital” strategy (i.e., physical and digital) that combines over 650,000 physical agent distribution outlets for payment solutions, remittance, travel, and insurance products throughout India and Southeast Asia as of December 31, 2021, with a digital omnichannel online platform for all of the offerings by the company. This results in a business model that could be difficult to replicate and which is intended to provide a smooth customer experience regardless of product, service, or location.


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    EbixCash Limited IPO Key Business Segments:

    • Payment Solutions:

      EbixCash Limited primarily offers Domestic Remittance, Forex, International Remittance, and Pre-paid Cards / Gift Cards (“Pre-paid Cards”), where in each case the company largely generates revenue based on commissions and transaction fees. While Financial Year 2020 was affected adversely by COVID-19 for one quarter, the remaining three quarters were relatively unaffected by such COVID-19 impacts.

    • Travel:

      EbixCash Limited’s Travel offering includes travel-related sales and services on a B2B basis, corporate travel services, and bookings through VIA.com, travel-related sales and services on a B2C basis, as well as MICE and luxury travel services and products. The company had over 2,200 employees, a network of 212,450 agents, 25 branches, and over 10,000 corporate clients

    • Financial Technologies:

      EbixCash Limited offers Financial Technology products and services through EbixCash Financial Technologies, which provides on-demand software technology services to various clients in the areas of wealth, insurance, asset and lending management, and travel and bus exchange channels. Within the financial technology business segment, we have taken a backward integration approach, such that we can offer various technology services on an end-to-end basis, which has allowed us to better retain clients and cross-sell other services and products.

    • BPO services and Start-up initiatives:

      EbixCash Limited offers BPO services through EbixCash Global Services Private Limited to clients across India, providing customer retention and customer experience services, including inbound/outbound contact call centers; email, chat, and social media contact centers; feet on the street and last-mile delivery services; hiring, onboarding, payroll, and human recourses helpdesk services; and IT, digital transformation services such as knowledge management, application development, and infrastructure management. The key clients include HDFC Bank. The company serves over 25 large companies in India, with an average tenure of more than nine years.

    EbixCash Limited also actively assesses small businesses and start-ups as part of the acquisition strategy and/or for possible partnership initiatives. This approach has historically provided opportunities for the company to invest in start-ups such as AHA Taxis. The company’s aim is to invest in asset-light technology start-ups that provide it with a strategic position in emerging sectors such as agritech, fintech, healthtech, insuretech, and wealth tech.

    EbixCash Limited IPO Revenue from operations Analysis:

    Segment 6M FY-22(in cr.) % FY-21(in cr.) % FY-20(in cr.) % FY-19(in cr.) % CAGR
    Sale of:

     – Foreign exchange, money transfer and

    – Payment service & Prepaid Instruments and other

    2062.42 77.73% 3415.72 82.26% 1125.55 51.87% 235.36 12.46% 143.9%
    Sale of: Travel Services 56.33 2.12% 70.56 1.70% 456.83 21.05% 750.13 39.72% -54.5%
     Sale of:

     – Information technology and related services and

    – Software products and platforms”

    516.33 19.46% 666.26 16.04% 587.64 27.08% 895.21 47.41% -9.4%
    Sale of goods: Other Operating income 18.34 0.69% 0.00 0.00% 0.00 0.00% 7.63 0.40%  
    Total 2653.42 100.00% 4152.53 100.00% 2170.02 100.00% 1888.33 100.00% 30.0%

    EbixCash Limited IPO Details:

    IPO Open Date Not Available
    IPO Close Date Not Available
    Listing Date Not Available
    Face Value ₹1 per share
    Price Not Available
    Lot Size Not Available
    Issue Size [●] shares

    (aggregating up to ₹6000 Cr)

    Fresh Issue [●] shares

    (aggregating up to ₹6000 Cr)

    Offer for Sale Not applicable
    Issue Type Book Built Issue IPO
    Listing At BSE, NSE
    QIB Shares Offered Not more than 50% of the Offer
    NII (HNI) Shares Offered Not less than 15% of the Offer
    Retail Shares Offered Not less than 35% of the Offer
    Company Promoters Ebix, INC. and Ebix Singapore PTE. LTD.

    EbixCash Limited IPO Financial analysis:

    Particulars 6M FY-22(in cr.) FY-21(in cr.) FY-20(in cr.) FY-19(in cr.) CAGR
    Revenue from sale 2653.42 4152.53 2170.02 1888.33 30.0%
    Other Income 11.10 143.27 111.92 199.28  
    Operating Cost 2043.13 3310.68 941.88 723.74  
    Employee Cost 178.80 265.12 349.26 316.94
    Other expenses 102.98 208.28 494.30 422.41
    EBITDA 339.60 511.73 496.50 624.52 -6.4%
    EBITDA margin% 12.80% 12.32% 22.88% 33.07%  
    Depreciation 35.05 69.20 64.62 69.27
    Interest 66.26 47.17 97.98 105.89
    PBT 238.29 395.37 333.90 449.36 -4.2%
    Total tax 37.28 152.45 92.00 -15.53
    PAT 201.00 242.92 241.90 464.89 -19.5%
    PAT margin% 7.58% 5.85% 11.15% 24.62%  
    Dep./revenue% 1.32% 1.67% 2.98% 3.67%
    Int./revenue% 2.50% 1.14% 4.52% 5.61%

    EbixCash Limited IPO Strengths:

    • EbixCash Limited serves the customers’ needs across their entire digital journeys, bringing together the advantages of B2B, B2C, and B2B2C models within a single platform. The company’s 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 of the company, it develops, deploys, and typically has end-to-end control over all the 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 the stickiness of the customers.

    • EbixCash Limited 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, EbixCash Limited had licenses to operate in payment solutions, forex, remittance, and bill payments. Accordingly, in these industries there are high barriers to entry for new entrants

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

    • EbixCash Limited’s highly reputed Board includes members such as former U.S. Securities and Exchange Commission Chief Economist and Padma Shri Awardee (2020) Sriprakash Kothari, former BSE’s Chairman and current Tourism Finance Corporation of India chairman, Sethurathnam Ravi, former deputy managing director of the Corporate Accounts Group at State Bank of India, Sunil Srivastav, former RBI’s executive director Uma Shankar, Neil David Eckert, and former Alight Solutions LLC India managing director Pavan Bhalla

    EbixCash Limited IPO Risk Factors:

    • EbixCash Limited has and will continue to introduce new products and services, and has limited experience in offering these new products and services, and it cannot assure that such services and products will be profitable now or in the future. Further, the company may not be able to successfully diversify the product and services portfolio or enter into new lines of business, which may adversely affect the business prospects and future financial performance. The company may not be able to develop new products or services necessary to effectively respond to rapid technological changes.

    • The industries EbixCash Limited operates in are very competitive and its growth strategy depends on its ability to compete effectively. The company operates in a price-sensitive market and it is subject to pressures from customers to decrease the fees for the services and solutions that the company provides. Any reduction in price would likely reduce the margins and could adversely affect the operating results of the company.

    • Acquisitions may disrupt EbixCash Limited’s ongoing business, divert its resources, and require significant management attention that would otherwise be available for the ongoing development of the current business. In addition, the company may be required to make additional capital investments or undertake remediation efforts to ensure the success of the acquisitions, which may reduce the benefits of such acquisitions. The company also may be required to use a substantial amount of the cash or issue debt or equity securities to complete an acquisition or realize the potential of an alliance, which could deplete the cash reserves and/or dilute the existing stockholders. If any of these risks were to play out, it could have a material adverse impact on the results of the operations and financial conditions of the company.

    • EbixCash Limited’s product development cycles are lengthy and may incur significant expenses before it generates revenues, if any, from new products. If the company is unable to complete product development cycles successfully and in a timely fashion and generate revenues from such future products, the growth of the business may be harmed

    • EbixCash Limited proposes to utilize the Net Proceeds to undertake inorganic growth for which the target may not be identified. If Net Proceeds to be utilized towards funding strategic acquisitions and investment are insufficient for the cost of the proposed acquisitions and other strategic initiatives, the company may have to seek alternative forms of funding.

    Objects of the Issue:

    EbixCash Limited proposes to utilize the Net Proceeds towards the funding of the following objects

    • Funding the working capital requirements of the Subsidiaries, Ebix Travels Private Limited and EbixCash World Money Limited
    • Purchase of outstanding compulsorily convertible debentures from Ebix Mauritius which were issued by certain of the Subsidiaries of the company and payment of interest on such outstanding compulsorily convertible debentures
    • Funding strategic acquisitions and investments and general corporate purposes

    EbixCash Limited IPO Prospectus:

     Registrar to the Issue:

    Link Intime India Private Limited

    C-101, 1st Floor, 247 Park

    L.B.S. Marg, Vikhroli West

    Mumbai – 400 083, Maharashtra

    Phone: +91 22 4918 6200

    Email: ebixcash.ipo@linkintime.co.in

    Website: www.linkintime.co.in