In reply to Hari.

VXLAN/EVPN combines a integrated route and brdige (IRB) approach with Distributed Anycast Gateway.
Every Top-of-Rack (TOR) Switch where a given VLAN is configured can act as the active default gateway. In this case, all TORs will share the same Gateway MAC and IP Address and allow first-hop-routing decision as close as possible to the Host. As the MAC and IP is the same, VM mobility will be seamless as no changes are visible from the VM perspective.
The advantage of our integrated routing and bridging approach is that we do not need to create a VLAN on all TOR to route to a given destination, we can scope the configuration to where a VLAN is really necessary and preserve resources this way.
Cisco uses Symmetric IRB as described above, which allowes scoped configuration while VMware DLR uses more the forwarding semantics of Asymmetric IRB and thus requires either all VLAN/VNI everywhere or a transit routing segment for reaching them.