The Hindu Business Line  Jul 26  Comment 
US-based insurance exchange and investment firm Ebix has pumped in an additional $100 million in Indian fintech and payments solution provider ItzCash. Earlier in May this year, Ebix had picked up...
The Economic Times  Jun 18  Comment 
Naveen Surya started ItzCash in 2005. Last month, the company sold 80% of its stake to Nasdaq-listed insurance software solutions firm Ebix for Rs 800 crore.
The Hindu Business Line  May 29  Comment 
Ebix Inc, a US-headquartered supplier of on-demand software and e-commerce services for a host of industries including insurance, financial and e-governance, has picked up an 80 per cent stake for a...
Reuters  May 24  Comment 
U.S.-based software firm Ebix Inc will pay 8 billion rupees ($120 million) for a majority stake in Indian payment provider ItzCash, the companies said on Wednesday, the latest foreign investment in India's booming digital payments market.
The Hindu Business Line  May 24  Comment 
Early investors Matrix Partners, Intel Capital exit


Ebix, Inc. (NASDAQ: EBIX) is a supplier of software and e-commerce solutions to the insurance industry. The company makes money by providing a series of application software products for the insurance industry from carrier systems, agency systems to custom software developments in both insurance and financial industries. Because IT infrastructure is not a material revenue generating factor in most businesses, it is often neglected during business downturns, therefore hurting Ebix's margins. The recent increased consolidation within the insurance industry will help boost Ebix's top line.[1]

Business Growth

The insurance industry has undergone significant consolidation in the past few years driven for the needs of economies of scale. As the insurance markets have also seen a steady increase to reduce paper-based processes and efficiency, the fact that 71% of Ebix revenues came from on-demand insurance exchanges helps drive business growth for Ebix. The management believes that the insurance industry will continue to require a need for software integration services as consolidation continues, creating new opportunities for Ebix.


IT Infrastructure is Not a Revenue Generator for Clients and Often is Tossed in the Back Burner

When a company is strapped for cash, improvements in Information Technology is often put on the back burner as the company needs to focus on its core products. This is specifically because information technology facilitates efficiency, but managers' intentions to protect the bottom line often strip IT spending until it is absolutely necessary.

In the case of an economic downturn, it is highly likely that Ebix will lose a large part of its business. Further, if Ebix attempts to replace this lost traffic, it may be likely that the increase in sales and marketing expenses does not offset additional revenue.[2]

Increasing Interest in Cloud Computing will Provide New Business Opportunities

Cloud Computing technologies have become more and more useful in corporate daily operations. The ability to work on the same project, but thousands of miles away saves money and time on business travel. As a result, businesses have become keen on adopting these technologies to create greater efficiency.[3]

One problem that occurs in any new adoption of IT technology is the integration of old technologies. As businesses continue to adopt cloud computing resources, clients will need the services of IT developers such as Ebix to provide an easy transition. Ebix therefore stands to gain greater customer traction through these venues.


The IT industry is dominated by large players such as:

  • International Business Machines (IBM) is an IT company that provides IT infrastructure services and business process services. The company offers a broad range of products including professional services and application management services. The company even has a Global Financing that helps in financing assets and leverages with debt.
  • CA (CA) is an independent enterprise IT software and service company with capabilities across IT environments from mainframe and physical to virtual and cloud. CA develops and delivers software and services that help organizations to manage and secure their IT infrastructures and deliver flexible IT services.
  • EMC (EMC) supports the IT industry’s range of information infrastructure and virtual infrastructure technologies and solutions. It operates in two business segments: EMC’s Information Infrastructure business and the EMC’s VMware Virtual Infrastructure business.


  1. EBIX Form 10-K, FY 2010, Pg 11
  2. EBIX Form 10-K, FY 2010, Pg 13
  3. Programmer’s Paradise Merges with TechXtend
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