Software firm Ebix has bought a fourth money transfer company in India as it strengthens its position as a financial exchange. Ebix bought Money Transfer Service Scheme (MTSS) business of Transcorp International Limited for $7.4 million. The acquisition will be accretive to the company’s financials as soon as it completes the necessary approvals within 45-60 days.
Over the last few months, the company has bought Paul Merchants, YouFirst Money Express Private Limited and Wall Street Finance Limited.
Transcorp International has 7,500 distribution outlets, 70 branches, and processes approximately 1.7 million transactions per year. The company added that Transcorp accounts for around 10% of Western Union’s inward remittance flows in India. The acquisitions will be consolidated into the EbixCash Financial Exchange operations.
EbixCash Financial Exchange reported revenue of $11.1 million for the quarter ended September 2017 (Q3 2017) while in Q2 2017, EbixCash Financial exchange reported revenues of $8.4 million.
The company began its acquisition spree when it bought wallet and payment company ItzCash and renamed it as EbixCash. It is aiming to build a financial exchange with a significant presence in the money transfer business, insurance segment, lending & credit, mutual funds & investments segments.
Other acquisitions and partnerships
- It acquired online travel agent (OTA) Via.com for $74.9 million.
- It started a joint venture with the Bombay Stock Exchange for setting up an insurance distribution network.
- In November, Ebix also entered into a joint venture with Vara Technology to target IT & BPO Outsourcing in the Financial & Insurance Sector in India.
RBI to allow wallets to make cross-border remittance
In May, the Reserve Bank of India (RBI) opened new avenues of business. Wallets might be able to undertake cross-border inward remittances, according to its new draft guidelines. However, the wallets need to be fully KYC compliant and issuers can enable this facility only on explicit request of the customers. To begin with, a per transaction limit of not exceeding Rs 5000 for such cross-border transactions shall apply, the RBI said. However, the maximum value in these wallets at any point of time shall not exceed Rs 50,000.