MoneyGram International, a money transfer company located in the U.S., has signed an agreement with EbixCash, a wholly-owned subsidiary of Ebix Inc., to expand its business presence in the Indian market, the company said in a press release Monday.
Under the agreement, MoneyGram will offer its services through Ebix’s network which includes 320,000 distribution outlets spreading everywhere in the country.
Alex Holmes, chairman and chief executive officer MoneyGram, said, “MoneyGram is focusing on diversification by investing in both its digital business and in key international markets such as India.” “We are excited to enable EbixCash to plug into the MoneyGram platform to access our customer-centric capabilities and services.”
EbixCash forecasts its annual revenues from this deal to range between $20 million to $35 million.
Robin Raina, chairman and chief executive officer of Ebix, said, “Being a master agent for MoneyGram, our interests will now be perfectly aligned to ensure that MoneyGram’s reach is spread across the length and breadth of India through our strong franchise network. We see this as a game changing deal.”
As part of its business expansion plan, Ebixcash has acquired Essel Forex and Weizmann Forex the last year.
EbixCash provides money transfer services locally and globally as well as foreign exchange. It dominates nearly 80 percent of locations in India.
Meanwhile, EbixCash supplies e-commerce services and on-demand software to the its local and international customers.