US software company Ebix is prioritising three things: minimizing risk for itself in terms of any additional debt overhang; make acquisitions that boost growth in the short-term; and target companies that can get it near the 30% or higher EBITDA number.

The company’s travel, remittance, and forex businesses took a hit in Q1. Remittance revenue came from migrant labourers and workers in Middle East who send money back to India. They were either furloughed, did not have enough money to send back, or could not go to a MoneyGram, Western Union, or Ria outlet. Remittances improved in the third phase of lockdown in India (starting May 4) once it was declared an essential service and some establishments were allowed to open. Forex and travel are expected to bounce back since India is expected to further ease lockdown restrictions on May 18.

EbixCash accounted for 56% of the company’s revenue in Q1, while the insurance exchange accounted for 32%.

Acquisition for Trimax bus exchange: Ebix’s acquisition of bus exchange Trimax, announced in November 2019, was approved by the NCLT earlier this month. provides solutions within a bus and bus depot in 18 Indian states. It’s effectively a passenger control and e-ticketing system, where EbixCash makes money on each ticket. The company expects to make $25-30 million in revenue from the acquisition.

So for example, if you go into a bus, you will use an EbixCash smart card. You’ll wave that EbixCash smart card and pay for your ticket using firmware, using the device that’s sitting in the bus. That bus — that device will also count. There are other devices in the bus that will say, that 30 passengers, for example, sitting in the bus. And the bus depot — online will know, let’s say only 29 have bought tickets. And one person hasn’t a bought ticket and so on. – Robin Raina, Ebix CEO 

EbixCash IPO: Robin Raina said it is prudent “to let the COVID-19 crisis blow over and let the markets normalize” before the company launches its IPO.

Ebix acquisition of Yatra has not yet been completed, and now either party can legally terminate the merger agreement since the merger was not completed by May 4. The date has not been extended so far. CEO Robin Raina refrained from elaborating on this on account of confidentiality.

  • Total Revenue: $142.9 million, fell 4% YoY
  • EbixCash: $77.7 million, flat YoY
  • Net Income: $24.7 million, fell 4% YoY


Earnings Call Transcript | Press Release