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Ixigo IPO: Travel aggregator files for Rs 1,600-crore public issue

Ixigo IPO: Sequoia Capital, Elevation Capital, GIC and Micromax-backed travel app is dominant player in the train utility and ticketing category, competes with listed peers Easemytrip, Yatra and Booking.com.

August 13, 2021 / 09:10 AM IST

AI-based travel app ixigo, which is backed by the likes of Sequoia Capital, Elevation Capital (formerly Saif Partners), GIC and Micromax, has filed its papers with market regulator Sebi to raise Rs 1,600 crore via an initial public offer. Moneycontrol has reviewed a copy of the draft red herring prospectus (DRHP).

Moneycontrol was the first to report that ixigo was planning to go public in 2021 and was looking to raise Rs 1,500 crore to Rs 1,800 crore  via the proposed IPO in a story dated April 5.

According to the DRHP, the IPO will have a primary component of Rs 750 crore and an offer for sale component of Rs 850 crore.

The issue will facilitate a partial exit for investors Elevation Capital and Micromax, and the proceeds will also be used for organic and inorganic growth initiatives and general corporate purposes.

“In addition, our Company expects to receive the benefits of listing of the Equity Shares on the Stock Exchanges, including among other things, enhancement of our Company’s brand name among existing and potential users and creation of a public market for the Equity Shares in India,” the DRHP said.

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ICICI Securities, Axis Capital, Kotak Mahindra Capital & Nomura are the investment bankers working on the IPO. Law firms Shardul Amarchand Mangaldas and Khaitan & Co are the legal advisors.

A CLOSER LOOK AT THE FIRM AND ITS  FOUNDERS

Ixigo was launched in 2007 by Aloke Bajpai and Rajnish Kumar and competes with the likes of listed peers Easemytrip, Yatra and Booking.com. It helps customers to organise, book and track trips and provides real-time prices and availability for flights, trains, buses, cabs, hotels and destinations.

Aloke Bajpai is the Co-Founder, Chairman, Managing Director and Group CEO. He holds a bachelor of technology degree in electrical engineering from the Indian Institute of Technology, Kanpur and a master of business administration degree from INSEAD. He worked as a software development engineer and, subsequently, as a system and network engineer at Amadeus in France.

Rajnish Kumar is the Co-Founder, Non-Executive Director and the Group CPTO of ixigo. He holds a bachelor of technology degree in computer science and engineering from the Indian Institute of Technology, Kanpur. Rajnish worked as a software development engineer at Amadeus in France.

The Rs 510-crore Easemytrip IPO was launched on March 19, 2021, and got listed at Rs 212.25 on the NSE, a 13.5 percent premium to its issue price of Rs 187.

The sharp rise in the share prices of Easemytrip and IRCTC over the last 3 months reflects a temporary improvement in sentiment in the travel sector on the back of wider vaccination and “revenge” tourism.

THE ROAD TO FILING

ixigo’s journey to the filing of IPO papers with Sebi has been dotted with a flurry of activity over the last 4 months, including funding rounds, acquisitions and new board members.

On August 11, Moneycontrol first reported the exit of early investor Makemytrip from ixigo.

On July 27, 2021, Moneycontrol also broke the story of a pre-IPO funding round in ixigo by a consortium of investors led by GIC, Info Edge, Malabar Investments and White Oak Capital. Orios Venture Partners, Bay Capital & Trifecta Capital were also part of the consortium.

Recently, Ixigo had announced the buyout of Hyderabad-based bus ticketing and aggregation platform AbhiBus. This was the firm’s second acquisition in 2021 post the acquisition of train booking app Confirmtkt in February 2021.

It also beefed up its board with 6 new independent members which included executives from the travel and hospitality space like former IRCTC chairman and managing director Pratap Mall, Hopper founder Frederic Lalonde and Hamstede Living MD & CEO Rahul Pandit.

POSITIONING IN TRAVEL BOOKINGS SEGMENT: TAKEAWAYS FROM THE DRHP

“We are the largest Indian OTA in the online train bookings segment and our train-centric mobile applications, ixigo trains and ConfirmTkt, were collectively the leading B2C distribution platforms for IRCTC with 42 percent market share, in terms of rail bookings among the OTAs and B2C distributors of IRCTC in Fiscal 2021,” the firm says in the DRHP.

It adds further, “Our bus-focused app, AbhiBus, was the second largest bus-ticketing OTA in India, with a 10 percent market share in online bus ticket bookings, in Fiscal 2021. We are also the third largest flight OTA in India with a market share of 12 percent in online air bookings in Fiscal 2021.”

Elaborating on its GTV or gross transaction value and financials, ixigo said, “On a combined (proforma) basis (i.e., taking into account the operations of Confirm Ticket and AbhiBus in the relevant period) in Fiscal 2021 our combined GTV was Rs 26,946.02 million. Our revenue from operations have grown at a CAGR of 83.26 percent between Fiscal 2019 and Fiscal 2021 and were Rs 403.68 million, Rs 1,115.98 million and Rs 1,355.66 million in fiscals 2019, 2020 and 2021, respectively,”

The firm adds that it has the highest app usage among OTAs with 37.48 million users, based on MAUs in March 2021.
Ashwin Mohan
first published: Aug 12, 2021 11:34 pm
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