| Log in
Photo Credit: Thinkstock
TMT

Ebix to pick up 50% stake in Kanoria’s BPO biz Vara Technologies

17 November, 2017

In back-to-back deals, US-based software and ecommerce service firm Ebix, Inc has formed a joint venture with Vara Technologies and agreed to invest an undisclosed amount in Kanoria Foundation’s IT services firm in return for a 50% stake.

“Vara and Ebix executed a partnership agreement wherein Ebix agreed to infuse capital in Vara Tech and its subsidiary Vara United Pvt Ltd through subscription of newly issued shares, enabling Ebix to hold 50% stake, on the closing of the transaction. Ebix has valued Vara’s enterprise value at approximately $46 million,” Ebix said in a statement.

Vara provides IT and BPO services to Indian financial entities. It has an annual revenue run rate of around $31 million and 3,300 employees.

“The relationship with Vara represents a significant opportunity to expand our presence in the banking and financial services space in India which is one of the leading high growth economies globally,” said Robin Raina, chairman and CEO of Ebix Group.

Ebix has been on a fast-paced inorganic expansion drive in India’s financial services space ever since it picked 80% stake in digital payment firm ItzCash for $120 million.

It bought international remittance business of Paul Merchant’s, YouFirst Money and Wall Street Finance’s subsidiaries. Recently, Ebix acquired online-offline travel agency Via.com. The deal with Vara will help Ebix expand its presence to the IT and BPO services catering to the banking, financial services and insurance sectors.

“Our partnership with Ebix will help us in achieving the goal of becoming a leading technology player in banking and financial services,” said Sujit Kanoria, director, Vara.

Vara is part of HP Kanoria-led business group which has companies including Srei Infrastructure and Srei Financial Services among its group companies.

Like this report? Sign up for our daily newsletter to get our top reports.


Leave Your Comment
VCC Startups weekly wrap: Amazon India beefs up; Uber, Facebook test new offerings

VCC Startups weekly wrap: Amazon India beefs up; Uber, Facebook test new offerings

Manu P Toms 4 weeks ago
Global internet giants Amazon, Facebook and Uber took strategic steps this week...
M&A of the month: Ebix builds up India remittance biz with Paul Merchants deal

M&A of the month: Ebix builds up India remittance biz with Paul Merchants deal

Jyotindra Dubey 3 months ago
When US-based software services provider Ebix Inc. acquired a majority stake in...
ItzCash parent Ebix acquires Paul Merchants’ remittance biz

ItzCash parent Ebix acquires Paul Merchants’ remittance biz

Arti Singh 3 months ago
US-based software services firm Ebix Inc. has agreed to acquire BSE-listed Paul...
No Comments

Ebix to pick up 50% stake in Kanoria’s BPO biz Vara Technologies

Powered by WordPress.com VIP