EbixCash, a fully owned subsidiary of Ebix has signed an agreement with global money transfer and payment services player, MoneyGram to expand presence in India. Through this agreement, EbixCash will be MoneyGram’s exclusive partner in India. The aim of this partnership is to bring inward remittance volumes of 3 billion dollars annually.
“EbixCash will be MoneyGram’s exclusive partner in India. We see this as a very lucrative and high margin intensive deal. MoneyGram will be handling the inward remittances and EbixCash will be doing the servicing job,” said Robin Raina, Chairman, Ebix, without disclosing the commission structure.
The deal will allow MoneyGram to be able to reach additional consumers through Ebix’s 320,000 distribution outlets spread across 768 districts, 4,000 cities, and more than 75,000 villages and this will significantly increase its coverage in rural areas.
Through this partnership, EbixCash is expecting to clock net revenues between $20-$35 million annually. “This is a very conservative estimate. We expect to scale up revenues further and could look at annual revenues of about $50m over the next 2-3 years via this partnership,” said Raina.
Last week, the BSE-Ebix joint venture received formal approval for Certificate of Registration to act as a direct insurance broker (Life and General) under the IRDAI (Insurers Brokers) Regulations, 2018.
“We intend to do a soft launch in the second week of February for the insurance business. We are also planning to launch India's first re-insurance exchange in 2020,” shared Raina.
It's noteworthy that EbixCash has plans of going public. The company has already appointed bankers to the issue and is working with a July-August timeframe for the IPO.
First Published: IST