Ebix to hold 50% stake in Vara
Vara Technology Private Limited ("Vara Tech"), a Kanoria Foundation entity, and Ebix Software India Private Limited ("Ebix"), an affiliate of the Ebix Inc, on Friday announced a strategic partnership wherein Ebix would infuse capital in Vara Tech's subsidiary Vara United Private Limited ("VARA").
VARA and Ebix have executed a partnership agreement wherein Ebix has agreed to infuse capital in VARA 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 Rs 300 Crore.
VARA is engaged in providing IT and ITeS solutions to Indian BFSI entities. Ebix recognises the immense growth potential of providing customised IT solutions and services to Indian BFSI entities and has identified VARA’s unique positioning to expand and tap the business opportunities in this sector. VARA started business operation in August 2016 and generated revenue of Rs 120 crores during first 8 months in FY2017.
Ebix Group Chairman, President and CEO Robin Raina said, “The relationship with VARA represents a significant opportunity to expand our presence in the banking and financial services in India which is one of leading high growth economies across the globe.