Travel aggregator Ixigo files for Rs. 120 crore IPO
What's the story
LE Travenues Technology, which runs travel portal Ixigo, has submitted fresh draft papers to Securities and Exchange Board of India (SEBI) for its initial public offering (IPO). The IPO includes a fresh issue of shares worth Rs. 120 crore and an offer-for-sale (OFS) of over 6.66 crore equity shares by current shareholders. Supported by SAIF Partners India IV, Peak XV, and others, Ixigo had previously filed an IPO in August 2021 to raise Rs. 1,600 crore but could not launch.
The backers
Founders will sell 1.19 crore shares each
In the OFS, major selling shareholders include SAIF Partners India IV and Peak XV Partners Investments V with 1.94 crore and 1.3 crore shares, respectively. Founders Aloke Bajpai and Rajnish Kumar will sell 1.19 crore shares each. The remaining 1.03 crore shares will be sold by Micromax Informatics, Placid Holdings, Catalyst Trusteeship, and Madison India Capital HC. Founded in 2007 by Bajpai and Kumar, Ixigo is an AI-based travel app competing with EaseMyTrip and Yatra Online.
Market competition
Ixigo's market position and competition
Ixigo helps Indian travelers plan, book, and manage travel across rail, air, buses, and hotels. The value of the Indian travel market is estimated to be around Rs. 3.8 lakh crore in FY23 and is expected to grow at a rate of 9% to reach Rs. 5.8 lakh crore by FY28. Ixigo reported a net profit of Rs. 23.4 crore for the year ended March FY23, compared to a loss of Rs. 21.09 crore the previous year.
Fund utilization
Financial performance and IPO fund utilization
For the nine-month period ended December FY24, Ixigo recorded a net profit of Rs. 65.7 crore, up from Rs. 18.66 crore in the year-ago period. Revenue from operations stood at Rs. 491.02 crore, a 35% increase from Rs. 364.3 crore year-on-year. The company aims to use the fresh issue proceeds for working capital requirements (Rs. 45 crore), cloud infrastructure and technology (Rs. 25.8 crore), inorganic growth through unidentified acquisitions, strategic initiatives, and general corporate purposes.