Payment Solutions Provider EbixCash Files DRHP For INR 6,000 Cr IPO

Noida-based holistic payment solutions company EbixCash has filed the draft red herring prospectus (DRHP) with the market regulator SEBI. The company will be raising INR 6,000 Cr through a fresh issue of shares. Its DRHP filing does not consist of an offer for sale.  

As per the DRHP, EbixCash may consider a pre-IPO placement aggregating up to INR 1,200 Cr  post consulting book running lead managers (BRLM). 

“If the pre-IPO placement is completed, the issue size will be reduced to the extent of such pre-IPO placement, subject to the issue complying with the applicable laws,” DRHP stated.  

EbixCash is wholly owned by its Singapore-based parent company, Ebix Singapore Pte Ltd.

The company plans to use INR 1,035 Cr to meet working capital requirements of its subsidiaries, Ebix Travels Private Limited and EbixCash World Money Limited. INR 2,747 Cr will be used for outstanding compulsorily convertible debentures from Ebix Asia Holdings Inc, Mauritius. 

In addition, funds will be deployed for strategic acquisitions and investments as well as for general corporate purposes. 

EbixCash’s revenue increased to INR 4,295 Cr in FY21 from INR 2,281 Cr in FY20, an 88.29 % increase. Its expenses widened to INR 3,900 Cr in FY21, a nearly 100% rise from INR 1,948 Cr in FY20. 

It posted a profit of INR 230 Cr in FY21, a 5.46% decline from INR 243.3 Cr in FY20. 

Founded by Naveen Surya in 2006, EbixCash helps consumers and businesses in international remittance based on GTV and foreign exchange, digital payments, domestic money remittances, prepaid cards and various other factors. 

Its independent directors include Hans Ulrich Keller, Neil David Eckert, Sriprakash Kothari, Pavan Bhalla, Sethurathnam Ravi, Uma Shankar and Sunil Srivastav. 

The company utilises phygital strategy and claims to combine over 650K physical agent distribution outlets for payment solutions, remittance, travel and insurance products throughout India and Southeast Asia to an omnichannel online digital platform.

In October 2020, it acquired AssureEdge Global Services Private Limited, which was later rebranded as EbixCash Global BPO services. 

EbixCash joins the growing list of other fintech companies which entered the IPO league in the recent times. Fintech giant Paytm got listed in November 2021 for INR 16,600 Cr; however, it did not receive a great response. 

Fintechs like Mumbai-based startup Fino Payments Bank; P.B Fintech, the parent company of Policybazaar and Paisabazaar got listed in November 2021 for INR 6,017 Cr.

Besides, Indian payment service provider Mobikwik also received SEBI’s approval in October 2021 to raise INR 1,900 Cr through a public offering.

Even fintech unicorn Pine Labs is planning to go for a US IPO. The company recently raised $150 Mn from Alpha Wave Ventures at a little over $6 Bn valuation. 

Sachin Bansa-led Navi Technologies is also heading for INR 4,000 Cr IPO. 

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