US-headquartered Ebix Inc., has invested $123 Mn (INR 800 Cr) in Mumbai-based payments solution firm ItzCash against 80% stake in the company. The funding has been done at a valuation of $150 Mn and Ebix will now be the majority shareholder in the company.
As told by the company spokesperson in an interaction with Inc42, with this infusion, the company’s earlier backers, Matrix Partners, Lightspeed Venture Partners and Intel Capital have exited for returns between 3X-5X. However, Essel Group, who prior to the deal was the largest stakeholder in the firm, still holds 20% stake in ItzCash.
With the new investment by Ebix, the company is looking to foray into areas such as credit, insurance, healthcare, and investments to accelerate growth momentum going forward.
“Ebix’s global reach and operations opens international expansion opportunities for ItzCash. We are keen to replicate our proven model, technology platform, and operating experience to other emerging markets for financial services” says Naveen Surya, founder of ItzCash.
The ItzCash Journey: A Snapshot
ItzCash was one of the early movers in digital payment space. Founded in 2005 by Naveen Surya, the company has since expanded into new businesses verticals such as remittances, financial services, corporate solutions, PoS and Payment gateway.
Along with the oldest ItzCash card launched in 2005, the company provides several pre-paid cards such as temporary payroll card, transport and petro card, salary cards, and corporate disbursements among others. These prepaid cards can be used at any offline or online touch point where third-party payments are accepted. The company also has partnerships with Visa, RuPay, and MasterCard and banks such as HDFC, IDBI, and DCB.
To date, the firm’s early investors have poured in around $51 Mn in the company. Ashok Goel, a serial entrepreneur and Vice Chairman and Managing Director of Essel Group company – Essel Propack – is currently the Chairman at ItzCash.