EbixCash, an India based subsidiary of Nasdaq-listed Ebix Inc, has acquired a 70 percent stake in AHA Taxis, a platform for on-demand inter-city cabs in India. With a network of more than 15,000 registered AHA Taxis AHA focuses on corporate and consumer inter-city travel.
Ebix is a international supplier of on-demand software and e-commerce services to the insurance, financial, healthcare and e-learning industries.
AHA has pioneered an offering of one-way fare for hiring taxis for outstation trips, whereas the trade norm used to be to charge the return fare. AHA solved this problem while engaging its proprietary technology, algorithm and network, said Ebix in a statement on Thursday.
Ebix Chairman, President and CEO Robin Raina said “AHA Taxis provides our Via and Mercury travel brands with another in-house tool to cross-sell cab services to our Corporates, B2C clients and OTA clients.”
Founded by first generation entrepreneurs Amit Grover, Kunal Krishna and Shivam Mishra, who bring a solid blend of experience and youth to EbixCash, with hands on execution expertise in technology, operations and marketing; it has a network spread across more than 4,000 cities.
With partners like PayTM, Makemytrip, Yatra, Via, RailYatri, Zomato, Mobikwik, Savaari and Ticketgoose.com, AHA Taxis has built an impressive customer retention rate of approximately 30% and one of the lowest customer acquisition costs in the industry at 5% of its revenues.
AHA Co-Founder Amit Grover said, ‘We have been a startup till now that has grown approximately 100 times since January 2015. We grew AHA on minimal seed capital and became break-even in 2018. We needed the physical and digital client & franchisee expanse of a massive network like EbixCash to substantially grow our business. We are quite excited by the growth opportunities ahead of us.”
Prosight Partners advised AHA Taxis on this transaction. Ebix did not use any Investment Bankers.
AHA Co-Founder Kunal Krishna said, “Our domain knowledge and technology has helped us solve the several decades problem plaguing the taxi travel space in the country. With Ebix, we intend to take AHA offerings to every Tier 2, Tier 3 city in the country and help millions of people save money on their travel. AHA technology does not only solve the problem for India, and in-fact can also be extended to other South Asian countries.”
With an inter-city market opportunity that is presently estimated at $10 billion, and growing at 20% annually, AHA Taxis has focused its attention on this focused inter-city market segment. With a population of 1.3 billion people, an estimated 90% of the cab trips are booked one-way with two-way trips accounting for only 10% of the cab trips.
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