Software firm Ebix commits to invest $100 mn in Indian companies via ItzCash

After gaining 80 percent stake in digital payment platform ItzCash, US-based software firm Ebix has decided to pump in more investments in the Indian market. The US-based firm has pledged a fund of $100 million to make more investments and acquisitions in Indian companies, which will be via ItzCash.

"Ebix has set up an aggressive growth path ahead of itself, both in terms of revenues and operating income," said Robin Raina, chief executive at Ebix.

According to chief growth officer Bhavik Vasa, the digital payments company is already in advanced talks with companies in the lending, international remittance and travel sectors, and hopes to close some deals in the next quarter.

The company also aims to make some of the investments in the next 90-120 days. Besides, it also plans to make investment or acquisition in international remittance; its investee ItzCash is in final stage to get the approval for carrying out international remittance.

The software firm also plans to do some investments in lending side and is looking forward to giving working capital loans to the 75,000 merchants that it has partnered with across the country to enable bill payments and money transfer.

The new development comes a day after ItzCash managing director Naveen Surya quit the firm. Yesterday, Surya announced his resignation from the digital payments company and is planning to start his own venture.

Raina will take a job as chairman of the company’s board, while Vasa and chief business officer Ravi Singh will take full execution charge.

In May this year, Ebix had bought 80 per cent stake in ItzCash, valuing the firm at about $150 million. It also gave exits to early investors Matrix, Intel Capital and Lightspeed Venture Partners. Essel Group owns the remaining 20 per cent stake in the company.