DIAL M FOR MARKETS

ROBIN RAINA'S PROFITABLE FINTECH EBIXCASH IS NOW READYING TO TAKE THE PUBLIC MARKET TEST

- ANAND ADHIKARI

THE STOCK PRICES of US-headquartered, NASDAQ-listed Ebix Inc., a global player in software solutions for insurance, healthcare and financial services, have doubled to $24 a share in the past two months. One probable reason is that its step-down subsidiary, EbixCash Limited, is readying to debut in the Indian stock market next month.

Robin Raina, who achieved fame in the US by reviving struggling Ebix Inc. two decades ago, had actually borrowed money from the US parent company to enter the Indian market. Raina, the Chairman, President and CEO of Ebix Inc., used the money to acquire over two dozen companies in payments, travel, forex and remittances to create an ‘airport’ of financial transactions in India.

The 47-year-old Ebix Inc.’s investors, though, were uneasy. First, the credit line to the fledgeling Indian entity created uncertainty about repayment. Second, the Indian financial services industry is crowded with start-ups such as Paytm, non-banking finance companies (NBFCs) such as Bajaj Finance, and big banks owned by public, private and foreign giants. In India, many fintech players were struggling to show scaleable, sustainable and profitable growth without cashbacks and discounts. The sudden surge in the Ebix Inc. stock price could actually be a sign of what to expect from the listing of the Indian subsidiary’s mega ₹6,000-crore IPO.