Mumbai: Ebix Inc., an international supplier of on-demand software and e-commerce services to the insurance and financial services industry, on Monday said that it had agreed to acquire the money transfer service scheme (MTSS) business of YouFirst Money Express Pvt. Ltd. The firms did not disclose the financial details of the deal.
YouFirst is promoted by former Citibank and Reliance Capital executive Vikrant Gugnani.
“With a market share of almost 15% of Western Union’s inward remittance flows in India, YouFirst is the third largest international remittance player in India,” the statement said.
This is Ebix’s second acquisition in the remittance space in the span of a few days. Just last week, it announced that it would be acquiring the MTSS assets of Wall Street Finance Ltd, along with its unit Goldman Securities Ltd.
Ebix will spend $7.4 million on both the acquisitions, reported Mint.
In July, the company said that it plans to spend around $100 million for investments and acquisitions in India as it looks to grow aggressively here.
Ebix made its India entry by acquiring an 80% stake in payment services firm ItzCash for Rs800 crore from Essel Group and other shareholders in May.
The acquisition of YouFirst and Wall Street MTSS assets gives Ebix approximately 25% share of the inward international remittance market in India.
“The acquisition will not only help expand our reach, but also help nurture cross-selling and increased revenue opportunities for our distribution outlets. We expect that the consolidation of YouFirst and Wall Street assets into our existing Financial Exchange infrastructure will enhance our operating margins substantially,” said Robin Raina, chairman, president and chief executive of Ebix.
The two acquisitions will increase the distribution reach of Ebix’s ItzCash to over 94,000 outlets across the country. ItzCash’s own remittance business has a domestic remittance volume of approximately $100 million per month.