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Updated December 20th, 2023 at 09:18 IST

EbixCash says Indian operations have “bright future” as US parent files for bankruptcy

The company has issued a clarification on the Chapter 11 filing in Texas, US saying its operations in India will not be affected.

Gauri Joshi
EbixCash
EbixCash | Image:Republic Business
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Fintech platform EbixCash claims to have a “bright future” even as its US parent struggles in bankruptcy proceedings after multiple extensions.

The company has issued a clarification on the Chapter 11 filing in Texas, US saying its operations in India will not be affected.

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As per the statement issued to the media, the Chapter 11 proceedings apply to Ebix entities in the United States only and Ebix’s 200 affiliates outside the region are not included in the Chapter 11 filing.

“Ebix subsidiaries will continue to operate normally. EbixCash companies in India, besides all international subsidiaries and their franchisees around the world are not included in the Chapter 11 filing,” the company said.

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All worldwide operations of the company will continue to operate in the ordinary course and without any interruption, the Robin Raina-helmed company added.

Notably, EbixCash claims the Chapter 11 proceedings “is a business tool used to provide breathing room for companies while they work through their financial and operational issues.”

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A similar fate was seen for co-working space proptech WeWork, which filed for bankruptcy listing nearly $19 billion of debts, but insulated Indian operations from proceedings.

EbixCash maintained that its future remains “bright,” and operations will ensue as before.

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“EbixCash has strong standalone financials and governance, with its cash flows solely available for its own needs. EbixCash future is bright - with strong operating fundamentals, a robust business model, world-class products, and healthy operating cash flows. EbixCash and all its subsidiary companies will continue servicing its existing customers, vendors, partners, and other stakeholders in the ordinary course of business,” the company claimed in the elaborate statement.

Multiple reports suggest that the company was planning for a public offering in India.

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The Ebix entity is also into remedial mode, after a statement chalked out the plan to pay back.

“As announced yesterday in a press release by Ebix, the US Company has secured a firm deal with Zinnia, to get a $400 million floor price for a North America software asset,” it said.

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Published December 20th, 2023 at 09:04 IST

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