New Delhi (India), February 5: As the startup IPO boom is set to continue in 2022, travel tech major Ixigo is eyeing a robust stock market debut on the back of a forward-looking and infrastructure focussed Union Budget for FY23.
According to the company, the announcement of new Vande Bharat trains over the next three years and further support for the hospitality sector under ECLGS scheme would, in turn, support the travel industry and boost consumer demand in the sector.
In December, the Securities and Exchange Board of India (SEBI) gave its approval for Le Travenues Technology Limited which manages the travel platform Ixigo to raise Rs.1600 Cr. through initial public offering. It plans to raise Rs 750 crore in fresh issue and Rs 850 crore in an offer-for-sale. Elevation Capital, with a 24 per cent interest in the company, is the largest shareholder in the travel booking company, followed by SCI Investments, with a 16.02 per cent stake, and Gamnat, with a 9.89 per cent stake. Aloke Bajpai and Rajnish Kumar, the company’s co-founders, own 9.18 per cent and 8.79 per cent of the company, respectively.
“This year’s budget has been among the most progressive budgets. Along with its focus on startups, the government has also given major push on infrastructure and railways. These measures will result in long term growth and boost demand,” said Utkarsh Sinha, Financial Analyst.
The Union Budget for 2022-23 was presented in Lok Sabha by Nirmala Sitharaman, India’s Finance Minister, who announced that 400 new-generation Vande Bharat trains with improved energy efficiency and passenger riding experience will be developed and constructed over the next three years. The increased number of trains will lead to higher travel and, as a result, more traffic on booking and reservation platforms such as IRCTC, Ixigo, and Confirmtkt. Because demand would increase, it will be a tremendous opportunity for Ixigo.
LE Travenues operates www.ixigo.com and www.confirmtkt.com, as well as the ixigo / confirm ticket mobile applications, which provide real-time information and booking services for the travel industry across airlines, trains, hotels, buses, and cabs. Both Ixigo and Confirmtkt are official IRCTC B2C premium ticketing partners for online train reservations in India. It helped the IXIGO group to consolidate its presence in Tier 3-4 markets with its combined user base of nearly 200 million Indians. IXIGO acquired Abhibus and reached the app earlier.
Ixigo is an AI-based technology company focused on empowering Indian travelers to plan, book and manage their trips across rail, air, buses and hotels. The company applies artificial intelligence, machine learning, and data science-driven technologies on their OTA platforms, which include their websites and mobile applications, to empower travelers to make better travel decisions. According to the F & S Report, they have a 42 per cent market share in train booking, a 10 per cent market share in bus ticketing, and a 12 per cent market share in flight ticketing. Since its start, the platform has processed Rs 5,000 crore in annualized gross booking value, with over 250 million app downloads.
The company’s financials have showed phenomenal growth, with revenue rising from INR 42.65 crore in 2019 to INR 138.40 crore in 2021, a CAGR of 80.13 per cent in three years, and assets rising from INR 60.38 crore in 2019 to INR 181.34 crore in 2021, a CAGR of 73.30 per cent in three years.
The company’s ESOPs are currently selling around Rs 240-Rs 250 in unlisted markets, and there is strong demand for this stock. IXIGO is presently valued at 1.2 Billion $ and would add to India’s unicorn club.
