Ixigo to invest heavily in hotel business and brand expansion
What's the story
Gurugram-based Le Travenues Technologies, the parent company of travel aggregator Ixigo, has announced plans to use part of its ₹1,296 crore fundraise for hotel business expansion and brand strengthening. Aloke Bajpai, Chairman and Group CEO of Ixigo said "Hotels are a very important priority area for us." The company also intends to boost brand awareness for its other platforms, like ConfirmTkt and AbhiBus.
Tech advancement
Major focus on AI-led innovation
A major chunk of the funds will also be invested in AI-led innovation as Ixigo looks to "reinvent" itself with new technologies. Bajpai said the company's "AI disruption pod" is working on multimodal, conversational, and hyper-personalized agentic AI tools that can act on behalf of users. This would make travel planning much more seamless and efficient.
Investment details
Prosus to acquire up to 16% stake in Ixigo
Prosus, a global technology investor, has agreed to buy up to 16% of Ixig, 10% through a primary fundraise and the rest possibly from the secondary market. Bajpai revealed that the disclosure of Prosus's intent letter was a voluntary move aimed at keeping investors informed. As long as its shareholding remains above 10%, Prosus will also have the right to appoint a board member.
Strategic allocation
Strategic breakdown of fund utilization
Explaining the strategic use of funds, Bajpai said the capital will be deployed over two and a half years. About a quarter each will be earmarked for organic and inorganic growth, while the rest will go toward working capital and general corporate purposes. Le Travenues Technology has a market cap of around ₹12,418.74 crore, with its shares gaining nearly 119% in the last year.