Ixigo files for its Rs 1,600 crore IPO

The name Le Travenues Technology may not really ring a bell, but this is the company that operates the highly popular travel platform Ixigo. This week, Ixigo has filed draft red herring prospectus (DRHP) with SEBI for its proposed Rs.1,600 crore IPO. The IPO will consist of a fresh issue of Rs.750 crore and an offer for sale (OFS) for Rs.850 crore. 

The two biggest sellers in the OFS will be Elevation Capital at Rs.550 crore and Micromax Rs.200 crore. In addition, two promotes Alok Bajpai and Rajnish Kumar will sell Rs.50 crore each. Elevation Capital was formerly called SAIF Partners and has $2 billion invested in India. Ixigo is an online travel agency (OTA), driven by artificial intelligence (AI) and machine learning (ML).

The Rs.750 crore fresh issue will be used to bankroll its organic and inorganic growth initiatives. Organic initiatives include discounts and promotional incentives as well as enhanced investments in marketing, distribution and technology infrastructure. Inorganic initiatives, on the other hand, refer to mergers and acquisitions.

Ixigo has some unique records to its credit. Its online train booking platform is the largest B2C distribution platform for IRCTC with 42% market share. Apart from its train focused app, ConfirmTkt, Ixigo also has a bus focused app, AbhiBus. Incidentally, AbhiBus has a 10% market share in bus bookings and is the second largest bus ticketing platform in India. 

In the recent past, Ixigo has clocked some huge numbers. For example, its gross order value (GOV) stands at Rs.2,695 crore for the year. Its app usage at 3.75 crore users is the highest, and its monthly app download of 37.50 lakhs is again a record. For FY21, Ixigo reported revenues of Rs.138 crore and a net profit of Rs.7.53 crore.