Ixigo is an Indian online travel agency (OTA) founded in 2007. They focus on empowering travelers in India to plan and book their trips for trains, flights, buses, and hotels. Ixigo uses artificial intelligence, machine learning, and data science to offer features like:
Fare alerts for flights
Train seat availability alerts
Train delay predictions
Personalized travel recommendations
Hotel booking
Brief about Company of Ixigo
Overview of Ixigo:
Calling all travel enthusiasts and potential investors! Ixigo, a leading online travel portal in India, is embarking on an exciting new chapter with its upcoming Initial Public Offering (IPO). This public listing presents an opportunity for you to be a part of India’s flourishing travel technology sector.
Here’s a quick glimpse into what awaits you:
Market Leader in Rail Bookings: Ixigo, along with its subsidiary Confirm Tkt, boasts a dominant position in the online rail bookings segment, capturing over half the market share in FY2023.
Growing Presence in Air Travel: The company is steadily expanding its footprint in the air travel market, already accounting for a significant portion of the total OTA airline bookings volume.
Focus on Tier II and Beyond: Ixigo recognizes the potential in India’s smaller cities and towns, targeting them for further growth, particularly in the railway ticketing space.
History of Ixigo
Ixigo, an Indian online travel platform, has a history of innovation and adaptation since its founding in 2007 by IIT Kanpur alumni Aloke Bajpai and Rajnish Kumar. Here’s a glimpse of their journey:
2007: Launched as a flights metasearch website, aggregating deals from various airlines.
2008: Expanded to include hotel search on their platform.
Early 2014: A major shift – ixigo launched its train ticket booking app, catering to a massive segment of Indian travelers.
2021 (February): Highlighting their focus on growth, ixigo acquired Confirmtkt, a popular train discovery and ticketing platform. This deal involved both cash and stock.
2021 (August): Further expanding their reach, ixigo acquired AbhiBus, a bus ticket booking and fleet management portal, again through a cash and stock deal.
Ixigo’s story highlights their ability to adapt to the evolving travel landscape in India. They started with a focus on flights and hotels, then recognized the importance of train bookings for the Indian market. Their recent acquisitions demonstrate their ambition to become a one-stop shop for travelers, encompassing various travel needs.
Management of Ixigo
Name
Designation
Aloke Bajpai
Chairman, Managing Director and Group Chief Executive Officer
Rajnish Kumar
Director and Group Co-Chief Executive Officer
Shailesh Lakhani
Non-Executive Director
Frederic Lalonde
Non-Executive Director
Arun Seth
Independent Director
Mahendra Pratap Mall
Independent Director–
Rahul Pandit
Independent Director
Rajesh Sawhney
Independent Director
Shuba Rao Mayya
Independent Director
Share Holding of Ixigo
S. No
Name of the Shareholder
Pre Offer
Percentage of share (%)
1.
SAIF Partners
23.75
2.
Peak XV
15.87
3.
Gamnat
9.80
4.
Rajnish Kumar
8.66
5.
Aloke Bajpai
8.20
6.
Micromax
5.89
7.
Trifecta Leaders
3.10
8.
Bay Capital
3.04
9.
Malabar India
2.60
10.
AbhiBus
2.29
11.
Kotha Dinesh Kumar
2.14
12.
Sripad Vaidya
2.14
13.
Invesco Emerging Markets Innovators Fund
1.93
14.
India Acorn
1.50
15
Public
9.09
Total
100%
Industry Overview
Industry Outlook
The travel industry has been the beneficiary of direct government policies to increase both domestic and inbound travel to India. Government policy is also active in all segments of air, road, and rail to move the masses across the country in the most efficient manner. This is evidenced by the number of roads and airports built, which indicate that the policy may be skewed towards such development to provide more tangible and immediate returns on investment. While this is harder in railway creation given the already saturated nature of Indian railways, the marginal incremental benefit of increased investments is being harnessed through policy actions.
Trends
The overall travel industry is expected to grow by 9% during the forecast period Fiscal 2024 to Fiscal 2028, but the growth rate of the online segment of the travel industry is expected to be even higher at 13%. (Source: F&S Report). As an OTA, our business growth and operations rely on the increase in the online penetration across different modes of transportation. Online penetration varied across the different modes of transport with penetration being the highest in rail and air travel as compared to buses and hospitality. (Source: F&S Report) If the expected growth or penetration of the online travel segment is not as anticipated, our business, financial condition, cash flows and results of operations may be adversely impacted.
Indian Tourism Industry Trends According to the World Travel & Tourism Council (“WTTC”), Indian travel and tourism spending was ₹ 16.5 trillion in Fiscal 2023 with an equally high contribution to GDP at 9.7% of GDP as of Fiscal 2023, and this contribution is expected to grow strongly in the forecast period. This includes not just transportation and accommodation spending but also spending on culture, sports, recreational spending, on entertainment, retail trade and food and beverage amongst others by residents as well as visitor exports. The Indian travel and tourism market for air, road, air and hotels accounts to around ₹ 3,808 billion and this is expected to grow to ₹ 5,904 billion in Fiscal 2028. The overall travel market is expected to grow at a CAGR of 9%.
ixigo is an Indian online travel platform that offers a variety of travel booking and planning services. Here are its business verticals:
Flight Booking: Ixigo allows users to search and book flights for both domestic and international travel. They offer features like fare alerts, flexible booking options, and seamless check-in.
Train Booking: Ixigo is a major player in online train ticketing in India. They provide users with real-time train information, predictions on delays, and innovative features like station alarms.
Bus Booking: Ixigo allows users to search, compare, and book bus tickets for various routes across India.
Hotel Booking: Ixigo offers hotel booking services for a wide range of hotels, from budget-friendly options to luxury stays. They recently ventured into this business vertical in 2024.
Offers and Deals: Ixigo curates travel deals and offers to help users save money on their trips.
Travel Information and Planning: Ixigo provides users with a wealth of travel information, including destination guides, travel stories, and tools to help them plan their trips.
Market Share
ixigo group % Share of the total OTA Industry by Volume
Fiscal 2021
Fiscal 2022
Fiscal 2023
9M Fiscal 2023
9M Fiscal 2024
Trains
25.1%
44.02%
46.15%
47.16%
52.64%
Buses
1.56%
10.02%
11.50%
12.55%
12.99%
Flights
11.70%
7.93%
3.30%
2.71%
5.30%
Product wise break-up
Particulars
Nine months ended December 31,
Fiscal
2023
2022
2023
2022
2021
(₹million, except percentages)
Advertisement revenue
223.16
194.75
240.86
144.20
79.66
Advertisement revenue, as a percentage of revenue from operations
4.54%
5.35%
4.81%
3.80%
5.88%
Ticketing revenue
4,522.78
3,383.67
4,670.33
3,619.20
1,262.55
Ticketing revenue, as a percentage of revenue from operations
92.11%
92.88%
93.17%
95.35%
93.13%
Ticketing revenue*
Nine months ended December31,
Fiscal
2023
2022
2023
2022
2021
(₹ million)
Flight Ticketing
1,007.35
692.76
971.12
1,326.06
935.21
Train Ticketing
2,563.48
2,057.40
2,389.29
2,044.79
316.20
Bus Ticketing
830.60
633.47
859.92
248.35
9.95
Others
31.35
0.04
–
–
1.19
Total
4,522.78
3,383.67
4,670.33
3,619.20
1,262.55
Take rate
Flights
Particulars
Nine Months ended December 31, 2023
Nine Months ended December31, 2022
Fiscal 2023
Fiscal 2022
Fiscal 2021
(₹million, except percentages)
Gross Transaction Value
26,352.85
14,705.87
20,154.88
22,562.27
15,351.37
Gross Ticketing Revenue
2,173.64
1,625.65
2,220.10
1,996.16
1,151.53
Gross Take Rate (%)
8.25%
11.05%
11.02%
8.85%
7.50%
Contribution Margin
533.41
374.88
561.84
423.30
376.02
Trains
Particulars
Nine Months ended December 31,2023
Nine Months ended December 31, 2022
Fiscal 2023
Fiscal 2022
Fiscal 2021
(₹million, except percentages)
Gross Transaction Value
40,705.37
32,687.11
44,715.27
30,201.91
5,869.23
Gross Ticketing Revenue
2,674.07
2,060.82
2,846.66
2,049.07
320.89
Gross Take Rate (%)
6.57%
6.30%
6.37%
6.78%
5.47%
Contribution Margin
969.32
672.16
961.17
585.75
123.40
Bus
Particulars
Nine Months ended December 31,2023
Nine Months ended December 31,2022
Fiscal 2023
Fiscal 2022
Fiscal 2021
(₹million, except percentages)
Gross Transaction Value
8,871.03
7,232.83
9,654.15
3,388.31
312.37
Gross Ticketing Revenue
975.18
730.41
996.54
293.29
21.72
Gross Take Rate (%)
10.99%
10.10%
10.32%
8.66%
6.95%
Contribution Margin
660.21
445.56
617.65
195.36
8.79
Strength
Leading online travel agency (“OTA”), with significant penetration in the underserved ‘next billion user’ market segment
Artificial intelligence (“AI”) and technology driven operations
Established consumer travel brands built with user-first approach
Diversified business model with significant operating leverage and organic flywheel
Experienced management team with lean organization structure
Top Suppliers
Particulars
None months ended December 31,2023
None months ended December 31,2022
Fiscal 2023
Fiscal 2022
Fiscal 2021
Revenue from Operations (₹million)
% of Revenue from Operations
Revenue from Operations (₹million)
% of Revenue from Operations
Revenue from Operations (₹million)
% of Revenue from Operations
Revenue from Operations (₹million)
% of Revenue from Operations
Revenue from Operations (₹million)
% of Revenue from Operations
Top 2 Suppliers
3,221.90
65.62%
2,379.57
65.32%
3,303.94
65.91%
2,607.60
68.70%
748.37
55.20%
Peers groups
Face value (₹per share)
Closing price on June3, 2024(in₹)
EPS(₹)
NAV(per share)(₹)
Name of Company
Total Income (in ₹ million)
Basic
Diluted
P/E
RoNW(%)
Le Travenues Technology Limited
5,175.73
1
N.A.
0.58
0.57
9.79
N.A.
5.74
Listed peers
Easy Trip Planners Limited
4,641.98
1
42.32
0.77
0.77
2.13
54.96
36.21
Yatra Online Limited
3,974.65
1
129.60
0.69
0.69
14.80
187.83
4.50
S.No.
Key performance indicators
Unit
Le Travenues Technology Limited
Easy Trip Planners Limited
Yatra Online Limited
1
Monthly Active Users
Numbers in Million
62.83
NA
NA
2
Gross Transaction Value
₹ Million
74,524.30
NA
NA
3
Revenue from Operations
₹ Million
5,012.50
4,488.26
3,801.60
4
Gross Revenue
₹ Million
6,405.47
6,749.10
5,999.42
5
EBITDA
₹ Million
450.45
1,913.00
510.88
6
EBITDA %
%
8.99%
41.20%
13.44%
Subsidiary companies
Ixigo Europe, S.L.
Group Companies
Name of the entity in the group
Relationship
Percentage of Holding
Le Travenues Technology Limited
Parent
Confirm Ticket Online Solutions Private Limited
Indian Subsidiary
95.33%
Ixigo Europe, Sociedad Limited
Foreign Subsidiary
100%
Freshbus Private Limited
Indian Subsidiary
41.40%
Freshbus Private Limited
Associates
41.40%
Business risk factors
Train ticketing services depend on our agreement with IRCTC. The termination of our agreement with IRCTC could preclude us from undertaking our train ticketing services and could otherwise have a material adverse effect on our results of operations, cash flows, financial condition and business prospects.
Company have had negative cash flows from operating activities in the past and may, in the future, experience similar negative cash flows.
Company is dependent on a number of key personnel and our inability to attract or retain such persons or finding equally skilled personnel could adversely affect our business, results of operations, cash flows and financial condition.
Particulars
Nine months ended December31,
Fiscal
2023
2022
2023
2022
2021
Average No. of Employees
473
315
492
338
160
Attrition Rate
19.91%
21.86%
27.14%
27.50%
25.80%
Company is dependent on limited suppliers and distributors for a significant portion of our revenue from operations. Any change in the arrangements with such suppliers or distributors could have an adverse impact on our revenues, financial conditions, results of operations and cash flows.
Particulars
None months ended December 31,2023
None months ended December 31,2022
Fiscal 2023
Fiscal 2022
Fiscal 2021
Revenue (₹million)
% of Revenue
Revenue (₹million)
% of Revenue
Revenue (₹million)
% of Revenue
Revenue (₹million)
% of Revenue
Revenue (₹million)
% of Revenue
Top 2 Suppliers
3,221.90
65.62%
2,379.57
65.32%
3,303.94
65.91%
2,607.60
68.70%
748.37
55.20%
Financials
Key Financial Ratios
Key performance indicators
Unit
Nine months ended December 31,2023
Nine months ended December 31,2022
Financial Year ended March 1,2023
Financial Year ended March 31,2022
Financial Year ended March 31,2021
Monthly Active Users
Numbers in Million
77.04
62.01
62.83
44.20
21.59
Gross Transaction Value
₹ Million
75,929.25
54,625.81
74,524.30
56,152.49
21,532.97
Revenue from Operations
₹ Million
4,910.21
3,643.08
5,012.50
3,795.80
1,355.66
Gross Revenue
₹ Million
6,245.15
4,676.33
6,405.47
4,515.12
1,588.44
EBITDA
₹ Million
343.17
298.27
450.45
(69.54)
61.43
EBITDA %
%
6.99%
8.19%
8.99%
(1.83%)
4.53%
Balance Sheet
(₹ in million)
S.No.
Particulars
Projected for Fiscal
2024
2025
2026
I.
Current assets
A.
Trade receivables
342.00
449.68
576.69
B.
Other current assets
1,170.70
1,562.33
2,104.45
Total current assets(I) excluding cash and bank balances
1,512.70
2,011.90
2,681.15
II.
Current liabilities
A.
Trade payables
594.44
740.76
931.32
B.
Other current liabilities
696.67
835.24
1,051.43
Total current liabilities(II) excluding borrowings
1,291.11
1,576.00
1,982.74
III.
Total working capital requirement (III)=(I)–(II)
221.58
435.90
698.40
IV.
Fund pattern
A.
Borrowings from banks, financial institutions and non- banking financial companies (including bill discounting)
221.58
–
–
B.
Internal accruals or equity
–
221.90
462.40
C.
Usage from Net Proceeds
–
214.00
236.00
P&L
For the year ended March 31,2023
Particulars
Flight Ticketing
Train Ticketing
Bus Ticketing
Others
Total
Gross Ticketing Revenue
2,220.10
2,846.66
996.54
–
6,063.30
Less : Discount
(1,248.98)
(7.37)
(136.62)
–
(1,392.97)
Ticketing revenue
971.12
2,839.29
859.92
–
4,670.33
Add: Other operating revenue
49.21
138.70
114.13
40.13
342.17
Less :Direct Expenses
458.49
2,016.82
356.40
0.01
2,831.72
Segment Results
561.84
961.17
617.65
40.12
2,180.78
Add :Other Income
163.23
Less :Unallocable expenses
1,893.55
Less : Finance costs
9.49
Less : Depreciation and amortization expense
108.16
Profit before tax
332.81
Add : Exceptional items
(126.07)
Profit after exceptional items and tax
206.74
Less : Tax expense / (income)
(27.22)
Profit for the year
233.96
Cash Flow
Nine months ended December31,
Fiscal
Particulars
2023
2022
2023
2022
2021
(₹million)
Net cash flow from/ (used in) operating activities
154.49
196.22
307.02
(343.49)
(151.84)
Net cash flow from/ (used in) investing activities
(737.80)
66.73
220.14
(2,216.35)
(101.87)
Net cash flow from/ (used in) financing activities
(52.15)
(13.22)
(21.77)
2,578.81
135.39
Net (decrease)/ increase in cash and cash equivalents
(635.46)
249.73
505.39
18.97
(118.32)
Cash and cash equivalents as at the end of the period / year
Innovative Platform: Ixigo is known for its innovative travel planning products that simplify the booking process.
User-Friendly Interface: The platform boasts a stellar 4.6-star rating from the Google Play Store, indicating a user-friendly experience.
Comprehensive Services: It aggregates and compares deals across various travel services, including flights, trains, buses, hotels, and packages.
Strong Partnerships: Ixigo has formed partnerships with over 100 travel websites to provide reliable travel information.
Weaknesses:
Market Competition: The travel-tech industry is highly competitive, which may pose challenges for Ixigo.
Dependence on Partners: Relying on external travel websites for data could be a risk if any of these partners change their policies or go out of business.
Opportunities:
Expansion of Services: There is potential for Ixigo to expand its services to include more travel-related products and experiences.
Technological Advancements: Leveraging new technologies like AI and machine learning could enhance the user experience and operational efficiency.
Threats:
Regulatory Changes: Changes in travel regulations could impact Ixigo’s operations and profitability.
Economic Fluctuations: Economic downturns can lead to reduced travel spending, affecting Ixigo’s revenue.
IPO Details
Ixigo IPO Details (Le Travenues Technology Ltd)
Detail
Information
Issue Type
Mainline IPO
Issue Size
₹740.10 Crore
Fresh Issue
₹120.00 Crore
Offer for Sale (OFS)
₹620.10 Crore
Price Band
₹88 – ₹93 per share
Face Value
₹1 per share
Lot Size
161 Shares (Minimum)
Open Date
June 10, 2024
Close Date
June 12, 2024
Listing Exchange
BSE & NSE
Why need of funds
S.No.
Particulars
Estimated Amount (in ₹ million)
A.
Gross Proceeds of the FreshIssue
1,200.00
B.
NetProceeds
Which shall be deployed towards the following objects:
Part-funding working capital requirements of our Company
450.00
Investments in technology and datascience including on cloud and server hosting technology on artificial intelligence and customer engagement
258.00
Funding in organic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes
