Travel aggregator ixigo has filed for an Initial Public Offering (IPO) of Rs 1,600 crore

5 August 2022
4 mins read
Travel aggregator ixigo has filed for an Initial Public Offering (IPO) of Rs 1,600 crore

An Overview

According to the company’s draft red herring prospectus (DRHP) filed with the capital markets regulator, ‘ixigo’ plans to raise Rs 750 crore through a primary fundraise and Rs 850 crore through an offer for sale (OFS) from current investors as part of its first public offering. On Thursday evening, the DRHP for the Rs 1,600 crore hike was filed.

While existing investors Micromax and Elevation Capital (formerly Saif Partners) will exit partially through an OFS, MakeMyTrip, the company that operates the online ticketing platform, has already exited the company through a secondary sale, clocking 8x returns on its $4.8 million investment.

According to the draft prospectus, the promoters Aloke Bajpai and Rajnish Kumar want to sell their holdings through the IPO. Last month, the company raised $53 million (Rs 395 crore) in a pre-IPO round led by Singapore sovereign wealth fund GIC, with Info Edge Ventures, Bay Capital, White Oak, Trifecta Capital, Orios Venture Partners, and Malabar Investments also participating.

Further Key Takeaways

The company is presently valued at roughly $850 million and is expected to go public later this year. ixigo, which was founded in 2007, has a user base of over 250 million people. It paid an unknown sum for Bengaluru-based online train discovery and booking company Confirmtkt earlier this year. Last Monday, the business announced the depressed sale of AbhiBus, a Hyderabad-based bus ticketing and aggregation platform.

The pandemic has wreaked havoc on the tourism industry over the previous 18 months. Travel and hospitality firms, on the other hand, have witnessed a resurgence, in markets such as the United States and Europe opening up as more than half of their populations have been vaccinated. Following the disastrous second wave of the pandemic virus, airlines and hospitality industries in India have seen improved occupancy rates.

ixigo IPO

Aloke Bajpai and Rajnish Kumar, noted for their unique ideas and out-of-the-box thinking, launched ixigo (Le Travenues Technology Pvt Ltd) in 2007. The initial public offering (IPO) of Ixigo will take place in 2021.

The goal of an IPO is to provide a partial exit for the company’s shareholders while also facilitating expansion financing. Financial advisers have begun preliminary conversations, and they are anticipated to be nominated soon. It is currently operating at a Rs 5,000 crore annualised gross booking value run rate, up nearly 2x from pre-Covid levels.

Operation

ixigo is an intelligent, AI-powered travel app that assists you in planning, booking, and tracking your trips. With ixigo, you can get real-time pricing and availability for planes, trains, buses, taxis, hotels, and destinations. ixigo is a one-stop shop for all things related to travel.

ixigo had a “net revenue of Rs 153 crores (35 percent YoY growth) as well as an EBITDA loss of Rs 5.4 crore (87 percent turnaround improvement)” in FY20, according to a tweet from co-founder Aloke Bajpai.

Competitors

ixigo, which competes with Yatra, Easemytrip, and Booking.com, helps customers plan, book, and track trips while also providing real-time price and availability for flights, trains, buses, taxis, hotels, and destinations.

International travel will remain tough for some time due to varied rules in host countries, but after active vaccination programmes around the world, the fourth quarter of 2021 might see a resurgence.

Objectives of the Issue

– Prepayment or repayment of all or a portion of the company’s outstanding borrowings on a consolidated basis.

– To achieve the company’s joint goals.

Wrapping Up

You must first open a Demat account in order to perform online trading if you want to be one of the public investors in ixigo’s IPO. You can open a Demat account and start trading in less than 5 minutes with the help of Angel One. Any questions you have about your Demat account will be addressed by Angel One’s support system.