STARTUP-STORIES

ixigo Gears Up for IPO Next Week, Aims to Fuel Growth and Tech Investments

SUMMARY

Online travel platform ixigo's parent company Le Travenues Technology is launching its IPO next week (June 10-12). The company aims to raise funds for acquisitions, technology investments, and general growth. A key strength is its focus on railway ticketing and Tier II markets in India.

This IPO follows a trend of Indian startups going public in 2024, including Go Digit and Awfis. Industry giants like Swiggy and Ola Electric might also list their shares this year.

Online travel aggregator ixigo's parent company, Le Travenues Technology, is set to launch its initial public offering (IPO) next week. Here's a breakdown of the key details and strategic implications:

IPO Launch and Details:

Dates: June 10th (Monday) to June 12th (Wednesday)
Issue Size: Fresh issue of INR 120 Cr + Offer for Sale (OFS) of 6.67 Cr shares
Investor Participation: 75% allocated to Qualified Institutional Buyers (QIBs), 15% to Non-Institutional Investors (NIIs), and 10% to retail investors.
Fund Usage: Acquisitions, technology & AI investments, working capital, and general corporate purposes.

Company Background and Strengths:

Founded: 2007 by Rajnish Kumar and Aloke Bajpai
Business Model: Online travel aggregator (OTA) offering flights, trains, buses, hotels, and holiday packages.
Unique Selling Proposition (USP): Focus on railway ticketing and Tier II & smaller markets.
Financials: Consolidated net profit of INR 68 Cr in first nine months of FY24 (up 3x YoY) and operating revenue of INR 491 Cr.

Market Context and Future Outlook:

Postponed Plans: ixigo's IPO plans were initially filed in 2021 but delayed due to market conditions.
Growing Public Listing Trend: ixigo joins other Indian startups like Go Digit, TBO Tek, and Awfis in going public this year.
Industry Giants Following Suit: Swiggy and Ola Electric are also reportedly considering IPOs in 2024.

ixigo's IPO signifies its intent to raise capital for growth initiatives and technology investments. Its focus on the underserved railway ticketing segment and Tier II markets positions it for potential success in the Indian travel market.