Ixigo: India's Rising OTA Powerhouse

Ixigo is a leading Indian online travel agency (OTA) that provides technology solutions for bookings and AI-driven travel planning. Founded in 2007 and listed on the IPO in 2024, it is led by promoters including CEO Aloke Bajpai, who brings expertise from McKinsey in tech and travel.

Ixigo - History & Profile

• Leading Indian OTA offering travel tech solutions for bookings and AI-driven planning
• Incorporated in 2007; IPO listed in 2024
• Promoters led by Aloke Bajpai (CEO, ex-McKinsey) with tech and travel expertise

The Shareholding Structure slide outlines the current ownership distribution, with promoters holding 25% and foreign institutional investors (FIIs) owning 30%. Domestic institutional investors (DIIs) account for 20%, while Prosus is projected to hold 15% post-issue after preferential allotment.

Shareholding Structure

• 25%: Promoters Holding

Current ownership stake

• 30%: FIIs Ownership

Foreign institutional investors

• 20%: DIIs Share

Domestic institutional investors

• 15%: Prosus Post-Issue

After preferential allotment Source: Ixigo Annual Report & Filings

The slide outlines the company's core business segments, with Train contributing 50%, Flights 30%, and Hotels/Buses 20% to FY25 revenue, directly aligning with overall revenue shares. It highlights sustained take rates of 10-15% across segments, marketing costs at about 20% of revenue, and employee expenses at 15%, emphasizing operational efficiency.

Business Details

• Core segments: Train (50%), Flights (30%), Hotels/Buses (20%) of FY25 revenue
• FY25 revenue shares align directly with segment contributions
• Take rates sustained at 10-15% across all segments
• Marketing costs represent ~20% of total revenue
• Employee expenses account for ~15% of revenue, underscoring efficiency

Ixigo, a train-focused OTA expanding into hotels and flights, trails larger peers like MakeMyTrip and EaseMyTrip in scale but leads in the rail niche, with MakeMyTrip offering diversified global services and profitability since FY20, while EaseMyTrip emphasizes low-cost penetration in tier 2/3 markets and recent insurance expansions. The slide highlights varying market focuses—Ixigo's mobile-first approach in smaller cities, MakeMyTrip's premium global dominance, and EaseMyTrip's affordability—and projects Ixigo's path to profitability by FY26 via cost efficiencies and growth.

Competitive Landscape

Ixigo's FY23 revenue reached ₹400 Cr as the base year figure, growing 62.5% year-over-year to ₹650 Cr in FY24. The company projects ₹900 Cr revenue for FY25 with continued expansion, and achieved its first profitable half-year with ₹20 Cr PAT in H1 FY26.

Ixigo Financials

• ₹400 Cr: FY23 Revenue

Base year revenue achieved

• ₹650 Cr: FY24 Revenue

62.5% YoY growth realized

• ₹900 Cr: FY25 Revenue Est.

Projected continued expansion

• ₹20 Cr: H1 FY26 PAT

First profitable half-year

The slide illustrates the price performance of a stock since its IPO launch at ₹130 in June 2024, highlighting its current price of around ₹500, which represents a 3x growth. It also notes a preferential issue at ₹400 and overlays post-listing volatility with key events.

Price Performance Since Listing

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• IPO launched at ₹130 in June 2024
• Current price ~₹500, showcasing 3x growth
• Preferential issue marked at ₹400
• Post-listing volatility with key events overlay

Source: Image from Wikipedia article "National Stock Exchange of India"

The Investment Case slide highlights frugal management with a low OPEX/revenue ratio for cost efficiency, alongside efficient tech investments driving 30% year-over-year growth. It also outlines hotel expansion through partnerships to double revenue by FY27, positioning the opportunity as a strong buy to capitalize on the long-term travel rebound.

Investment Case

• Frugal management: Low OPEX/revenue ratio ensures cost efficiency
• Efficient allocation: Tech investments drive 30% YoY growth
• Hotel expansion: Partnerships to double revenue by FY27
• Strong buy: Capitalize on long-term travel rebound