IXigo’s 1,600 Cr IPO on Travel Platform Gets SEBI Approval

The IPO will consist of an issue of new shares with a value of 750 Cr INR and an OFS of 850 Cr INR

ixigo had filed its DRHP in August 2021

It plans to use INR 640 Cr of the net proceeds to fund organic and inorganic growth initiatives

The Securities and Exchange Board of India (SEBI) approved the INR 1600 Cr IPO (IPO) of Le Traavenues Technology, which operates the ixigo travel platform.

The IPO will consist of an issue of new shares with a value of 750 Cr INR and an offer to sell (OFS) by existing investors for an amount of 850 Cr INR. The issue is expected to provide an exit opportunity for early investors, including Elevation Capital (previously known as SAIF Partners) and Indian smartphone maker Micromax.

According to an update on the SEBI website, the approval was given on December 16, 2021.

ixigo is supported by Elevation capital, Sequoia Capital India, Trifecta Capital, Fosun RZ Capital and InfoEdge, among others. In 2011, Elevation Capital and Nasdaq-listed MakeMyTrip invested $ 18.5 million in ixigo. To date, it has raised $ 88 million in funding.

Inc42 previously reported that online travel aggregator MakeMyTrip recently achieved an 8x return on investment in ixigo. The Nasdaq-listed startup left ixigo when it closed a $ 53 million pre-IPO funding round led by Singapore-based sovereign wealth fund GIC with participation from other investors.

In October, Fosun International sold a large portion of its stake in Invesco’s Emerging Market Innovators Fund in the United States and to Singapore’s sovereign wealth fund GIC, its current investor.

Fosun had invested nearly $ 5 million in ixigo in 2017 and held a 3.69% stake in the startup and sold 3.19% to Invesco and GIC. Sources familiar with the deal have been told Inc42 that Fosun received $ 30 million in return on investment after selling the majority of its stake in ixigo to Invesco and GIC.

In August, Le Travenues Technology converted to a public limited company and filed its draft prospectus on red herring (DRHP) later in the month.

Use of net proceeds

According to its HRD, ixigo will use INR 640 Cr to fund organic and inorganic growth initiatives.

In addition, ixigo intends to use a maximum of 25% of the net proceeds of the new issue for general corporate purposes.

The startup defines the general objectives of the company as strategic expansion into new lines of business such as budget hotels and travel packages, funding for growth opportunities, building marketing capacity and exercises. strengthening of the brand, responding to general business contingencies in progress and any other objectives, as approved by its Board.

Ixigo finances

According to the startup’s MCA documents, it recorded operating revenue of 135.5 Cr INR in FY21, up 21.5% from 111.5 Cr INR during in fiscal year 20. The total platform expenses decreased to 135.6 Cr INR in fiscal year 21, compared to 139.5 Cr INR in fiscal year 20. ixigo recorded a profit of 7.53 Cr INR in fiscal year 21, compared to a loss of 26.6 Cr INR in fiscal year 20, according to the documents filed.

Launched in 2007 by Aloke Bajpai and Rajnish Kumar, ixigo aggregates and compares real-time travel information, prices and availability of flights, trains, buses, taxis, hotels, packages and destinations. The startup operates two sets of apps, based on user interest, the ixigo Train app and the ixigo Flight app.

New Age Companies Go Public

With the approval of the capital market regulator to go public, ixigo is well on its way to joining the list of startups or new age companies to enter public markets.

Because ZomatoOutstanding market debut in July, several tech-backed startups went public, including Nykaa, Payment, Political bazaar, Fino Payments Bank and RateGain.

EaseMyTrip, ixigo competitor listed on national stock exchanges in March 2021 with a premium after its IPO was underwritten nearly 160 times.

Digital mapping startup MapmyIndia is expected to go public on Tuesday, December 21.

Hospitality unicorn OYO, Delhivery Logistics Major, epharma unicorn Pharmeasy, are a few other names in the category of new age startups awaiting SEBI’s nod to their draft IPO prospectus.

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