Ebix, a global supplier of on-demand software and e-commerce services across the insurance, financial, and healthcare sectors, has emerged from Chapter 11 bankruptcy.
The company is now said to be stronger than ever and is geared up to seize new opportunities following the announcement that it is now debt-free.
The firm successfully exited its restructuring process on August 30, 2024, after less than nine months. Major investors in this effort included Eraaya LifeSpaces Limited, a publicly traded company on the Bombay Stock Exchange, and the US-based Watch Hill Capital and Melanie Lane Partner Series.
Sidley lawyers, along with international accounting and investment banking firms, played a critical role in facilitating this complex cross-border restructuring.
Ebix, a pioneer in on-demand software and financial technology solutions, provides services to clients in over 75 countries.
The company’s operations are split across multiple sectors, including insurance, financial services, e-learning, and healthcare. It is particularly well-known for its platform, EbixCash, which offers financial exchange services such as money remittance, Forex, travel, and prepaid card solutions.
The fresh investment from Eraaya will enable Ebix to continue operating as a US-domiciled company while consolidating its global financial results into Eraaya.
The funds will be utilised to expand the company’s international footprint, invest in new technologies, and boost liquidity. Ebix will also leverage its existing infrastructure to increase its presence in regulated sectors like insurance and finance.
Under the leadership of CEO and Chairman Robin Raina, who remains at the helm post-restructuring, the company has committed to a renewed focus on efficient growth and profitability.
Raina’s proven track record has seen Ebix deliver over 27,500% shareholder returns and land on Fortune’s 100 Fastest Growing Companies list five times. Raina’s leadership extends to Eraaya, where he now serves as Chairman of the Board, overseeing efforts to maximize returns for Eraaya’s shareholders as well.
In addition to restructuring efforts, Ebix’s future looks promising, thanks to its strong market position, particularly in India and Southeast Asia, where its EbixCash platform has a robust ‘Phygital’ presence combining physical and digital services.
The company is also one of the leading non-bank travel exchanges in India, providing services to approximately 517,000 agents and nearly 18,000 corporate clients.
CEO Robin Raina commented, “Today marks a significant milestone in Ebix’s 48-year history. Through the relentless efforts of our team of advisors and employees worldwide, we are moving forward in an incredibly strong market position with an exciting road ahead of us. Now with a solid financial foundation, a leaner, more efficient operating model, and plans to raise more liquidity to invest in our business, Ebix has outstanding potential to drive long-term profitable growth. Both in the US and around the world, we are poised to capitalise on our industry leadership, deep operational expertise and our iconic global brand.”
Ebix’s strong history of profitability, coupled with its clean balance sheet and robust recurring revenue, indicates that the company is ready for a new phase of growth.
The company has also raised significant previous investments from other international backers, ensuring a diversified investor base as it moves forward.
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