EbixCash, Ebix’s India subsidiary, accounted for 55% of the company’s revenues in Q2 2019. Ebix’s “explosive growth” over the last year was primarily in India, driven by growth in EbixCash financial exchange business. Insurance exchange channel accounted for 32%, and primarily drove year-over-year revenue increase. EbixCash business grew by 58% and 43% after excluding and including, respectively, revenues from the discontinued e-governance business. Ebix is targeting its IPO for second quarter of 2020, which CEO Robin Raina Raina said last month will be worth a few billion dollars.
Between January to June 2019, core EbixCash dividends, payments (including remittances) and forex, grew by 52% YoY, and the financial tech division for travel, insurance, finance, and others grew by 118% YoY.
Ebix suspended its e-governance business with BSNL, until the PSU had been adequately funded by the government; as a result revenue fell from $10.2 million in 2018 to almost 200,000 in 2019
- Ebix’s bus exchange with the Rajasthan government is operational. This will bring recurring revenue transaction fees for sale of tickets for over 5,800 buses. The company made $1.5 million in revenues from the project in Q2.
- Trucking logistics: Revenue from trucking logistics division Routier was $2.5 million compared to no revenue in Q2 2018.
- Zillious had a run rate of approximately $1.7 million, and earned revenue of $1.6 million in the last six months.
- Mercury and Leisure travels had a run rate of $6 million a year from corporate and non-MICE (Meetings, incentives, conferencing, exhibitions) business lines. Mercury travels has earned $9 million in revenue in the last six months. Ebix has secured new MICE travel contracts at Mercury, it has already generated $12 million in revenue in the last six months, in addition to the $9 million non-MICE business revenue.
- BSE plans: Ebix is expecting regulatory approval for its insurance exchange with BSE, which is ready for deployment.
- Reinsurance exchange plans in Gujarat: BSE and Ebix are also exploring setting up a reinsurance exchange in Gujarat on the lines of the PPL reinsurance initiative in London, the venture is aimed at setting up a reinsurance hub that bring Asian, ASEAN, African and Pacific reinsurance business to India.
Ebix wants to be a one-shop-stop travel service provider
After Ebix’s acquisition of Yatra was completed in July, Raina spoke about Ebix becoming a one-stop-shop, a single-window for all services required around travel:
We would be the only provider who would be able to say, look, if you want to fly, let’s say, from Mumbai to Rome, we’re the only one who will say, look, I’ll get you the visa. I’ll be able to get you the visa. I will [inaudible] get you an airline. I’ll get you the cab here. I’ll get you health insurance. I’ll get you travel insurance. I’ll possibly provide you hotel insurance. And, incidentally, I will get you the forex card for 82 countries or 83 countries that you could travel across, hand over your foreign currency in whichever form you need. And, incidentally, you know, take up the airline, hotel, the traditional stuff and also take care of rental cars and cars and everything.
Download: Earnings Call Transcript | Press Release