Le Travenues Technology Ltd Management Discussions

About the Company

Launched in 2007, ixigo (Le Travenues Technology Limited) is a technology company focused on empowering Indian travellers to plan, book and manage their trips across rail, air, buses and hotels. ixigo assists travellers in making smarter travel decisions by leveraging artificial intelligence. The ixigo, Confirmtkt and AbhiBus apps allow travellers to book train tickets, flight tickets, bus tickets, hotels, and cabs, and provide travel utility tools and services developed using in-house proprietary algorithms and crowd-sourced information. With over 48 crore Annual Active Users in Fiscal 2024, ixigo is the leading OTA for next billion users in India.

Economic Overview

Global Economy1

In CY 2023, the global economy showcased remarkable resilience despite navigating various headwinds. Persistent geopolitical turmoil not only resulted in supply chain disruptions, but it also impacted global energy and food markets, causing fluctuations in commodity prices. However, central banks worldwide implemented aggressive monetary tightening measures to curb rising inflation. While the policies weighed upon the global growth, it proved to be successful in averting a recession.

The global economy achieved a growth rate of 3.3% for the CY 2023. While advanced economies such as the United States surpassed its pre-pandemic growth, supported by increased consumer spending and government expenditure, the European Union, meanwhile, faced moderate growth due to internal policies and external geopolitical risks.

Among the emerging markets, China witnessed a sluggish growth, owing to real estate sector issues and subdued consumer confidence, coupled with demographic and debt challenges. On the other hand, other emerging markets experienced relatively faster growth rates, driven by diverse economic strategies and foreign investments.

The strategic actions taken by central banks, including interest rate adjustments and comprehensive monetary policies, played an important role in stabilising the economy and managing inflation. Additionally, strong labour markets and healthy corporate balance sheets further contributed to the overall resilience of the global economy.

Outlook

The global economy is anticipated to sustain its growth momentum at 3.2% in CY 2024 and 3.3% in CY 2025. Looking ahead, global inflation is anticipated to gradually decrease, falling from 6.8% in 2023 to 5.9% in 2024 and further to 4.5% in FY25. As inflation eases more rapidly- than-anticipated across most regions, central banks worldwide are aiming to ease monetary policies. This is anticipated to boost economic growth, providing a more favourable environment for investment and development. High-frequency economic indicators suggest favourable momentum for most major economies. With decline in inflation and increased government spending, it is projected to ease fiscal pressures and attract investments for future growth.

Indian Economy2

Despite a sluggish global economy, India maintained its position as one of the worlds fastest-growing economies. The reported year recorded markets experiencing volatility as geopolitical turmoil intensified, interest rate hikes by the US Fed turned aggressive and the global outlook deteriorated, along with dampened investor sentiments. According to the National Statistical Office (NSO) India clocked a real GDP growth of 8.2% during FY 2023-24, driven by strong fiscal management, effective tax collections and prudent fiscal consolidation measures.3 The Government increased capital expenditure, reaching T12.7 lakh crore in FY24, which played an instrumental role in the growth of the Indian economy. This strategic investment in infrastructure and development projects stimulated private investment and fuelled domestic demand, playing a crucial role in propelling the economy forward. This also cushioned the Indian economy from global headwinds.

In FY 2023-24, both the services and industrial sectors displayed strong growth. Various government initiatives aimed at bolstering the manufacturing industry enabled India to attract investments and create a conducive environment for businesses to thrive. The services sector, particularly travel and tourism, saw a significant rebound, supported by increased domestic and international travel. There was a notable increase in discretionary spending, driven by higher disposable incomes and improved consumer confidence, which further supported economic growth. The industrial sector benefited from the production-linked incentive (PLI) scheme, which resulted in substantial investments and job creation. In addition to this, consumer sentiment in India has reached its highest level since mid-2019, with the Reserve Bank of Indias Current Situation Index rising by 3.4 points to 98.5 in March 2024, reflecting growing optimism about the countrys economic outlook.

Outlook4

The Indian economy is expected to benefit from increased public investment support and improved balance sheets of both banks and corporates. The Indian economy is expected to become the worlds third-largest economy by 2027, surpassing Japan and Germany. This growth trajectory is supported by strong macroeconomic fundamentals, a favourable demographic profile and ongoing structural reforms.

The outlook for the Indian economy remains positive, with the easing of inflationary pressures and the stabilisation of commodity prices will further enhance consumer confidence and spending. However, geopolitical risks and global economic uncertainties pose potential challenges to the growth outlook. Despite these challenges, the Indian economy is well-positioned to achieve sustained growth and development in the coming years.

Industry Overview5

Global Tourism Industry

The global travel and tourism industry is a significant and dynamic sector, contributing substantially to the global economy. The industry encompasses a wide range of services and activities, including transportation, accommodation, food and beverage services, entertainment and other tourism-related services. The global travel and tourism industry has shown remarkable resilience and recovery following the severe disruptions caused by the COVID-19 pandemic. In 2023, international tourist arrivals reached 97% of pre-pandemic levels, signalling a near-complete recovery. This resurgence has been driven by strong demand, enhanced air connectivity and improved visa facilitation, particularly in rebounding Asian markets. The Middle East has demonstrated the strongest growth, with international arrivals surpassing pre-pandemic numbers by 36%.

International tourist arrivals and the travel and tourism sectors contribution to global GDP are projected to return to pre-pandemic levels this year, due to the robust pent-up demand. In 2023, the global travel and tourism industry contributed approximately 9.1% to the worlds GDP, an increase of 23.2% from 2022. The sector also supported around 27 million new jobs, representing a 9.1% increase compared to 2022. This substantial contribution underscores the industrys vital role in global economic development and job creation.6

Technological advancements are pivotal in driving the growth and transformation of the travel and tourism industry. The adoption of digital platforms, artificial intelligence (AI), machine learning, and data analytics has revolutionized how travellers plan, book, and experience their journeys. Online travel agencies (OTAs) have leveraged these technologies to offer personalized travel solutions, enhance customer experiences, and streamline operations.

According to the Travel and Tourism Development Index (TTDI), high- income economies offer more favourable conditions for travel and tourism development. These advantages stem from supportive business environments, dynamic labour markets, open travel policies and well- developed transport and tourism infrastructure, along with rich natural, cultural and non-leisure attractions. However, developing countries have shown significant improvements in recent years.

Among upper-middle-income economies, China has maintained a top 10 ranking, with emerging destinations such as Indonesia, Brazil and

Turkiye also joining the top quartile. Overall, more than 70% of countries that have improved their scores since 2019 are low- to upper-middle- income economies, with the Middle East and North Africa (MENA) and sub-Saharan Africa being notable for their progress. The industry is expected to continue benefiting from ongoing improvements in air travel infrastructure, digital innovations and evolving consumer preferences towards more sustainable and personalised travel experiences.

Indias Tourism & Travel Industry

The Indian tourism industry has exhibited a robust recovery, driven by a combination of domestic travel resurgence and increasing international tourist arrivals. In 2023, the sector witnessed a significant rebound, with domestic travel playing a pivotal role in the recovery process. The governments initiatives, such as the Dekho Apna Desh campaign and the development of tourism infrastructure under the Swadesh Darshan and PRASHAD schemes, have further bolstered this growth. Indias tourism sector ranked 39th in the World Economic Forums Travel and Tourism Development Index (TTDI) 20248. Following a positive post-pandemic recovery, the industry saw over 9.2 million foreign tourist arrivals in 2023, representing a year-on-year increase of 43.5%. Key source markets for inbound tourism include the United States, the United Kingdom, China and Australia. The country earned more than Rs. 2.3 lakh crore in foreign exchange through tourism, marking a 65.7% year-on-year rise.

The domestic tourism market has also shown impressive growth, with an increasing number of Indians exploring their own country. This trend is supported by rising disposable incomes, an expanding middle class, and a growing preference for short-haul and experiential travel. Popular domestic destinations include Goa, Rajasthan, Kerala, and the Himalayan states, which have seen a surge in tourist footfall.

Key Initiatives9

Tourism Infrastructure Development and Global Engagement

The Indian tourism sector is continuing its growth with significant initiatives. The Pilgrimage Rejuvenation and Spiritual Augmentation Drive (PRASHAD) scheme has identified 29 new sites for tourism infrastructure, with 12 already inaugurated. The Swadesh Darshan 2.0 program aims to develop 55 destinations across 32 states and Union Territories. India chaired the first Shanghai Cooperation Organisation (SCO) Tourism Expert Working Group, focusing on collaborative strategies with member nations. The Ministry also hosted the 11th International Tourism Mart and Bharat Parv 2023 to promote tourism and cultural exchange.

Digital Innovation and Industry Support

The tourism sector is embracing digital transformation with initiatives like the e-Marketplace which connects tourists with certified facilitators and guides through web and mobile applications. The Union Government, in collaboration with State Governments and Union Territories, is also registering accommodation units in the National Integrated Database of Hospitality Industry (NIDHI) portal to support effective policy-making.

Outlook10

The Indian tour and travel sector is expected to experience robust growth of 12-14% in fiscal 2025. This growth is fuelled by persistently high airfares and travel volumes that are nearly back to pre-COVID levels across all segments, including long-haul travel, where visa-related issues are improving. This stability is supported by operational efficiencies, cost optimisation and automation measures implemented since the pandemic. Healthy cash flows and robust balance sheets are expected to bolster credit profiles.

The resurgence of overseas travel aspirations, particularly after the pandemic, along with an increasing demand for short getaways, is driving growth for Indian tour and travel operators. The growth in the overseas leisure segment will be led by short-haul destinations, such as the Middle East, parts of Europe and Southeast Asia, similar to the previous fiscal year. Long-haul travel to the US is also anticipated to rebound as visa-related delays decrease, although it may take time to return to pre-pandemic levels. The domestic leisure segment is expected to maintain a strong growth trajectory, supported by a growing preference for short breaks, improved infrastructure, and better last-mile connectivity.

The corporate and MICE (meetings, incentives, conferences, and exhibitions) segments continue to perform well. Travel operators are likely to boost promotional spending by 100-150 basis points of total revenue to capitalise on the surge in demand across various segments. This increased scale will help maintain operating margins at 6.5-7% in the current and following fiscal years. Future developments in the commercial air fleet, airfares, tax structure changes, and inflation will be key factors to monitor.

Global Online Travel Agency Industry11

In 2023, the global online travel agent market was valued at approximately $861.50 billion, having grown at a compound annual growth rate (CAGR) of 4.99% since 2018. The market is projected to expand from USD 861.50 billion in 2023 to USD 1,118.29 billion by 2028, at a growth rate of 5.36%. From 2028 to 2033, the market is expected to continue growing at a CAGR of 5.81%, reaching USD 1,483.31 billion. Historically, growth has been driven by rising disposable income, rapid urbanisation, population growth and increased internet penetration. However, growth has been tempered by skilled workforce shortages and high taxes on air travel. Looking ahead, the market will likely benefit from strong economic growth, increased e-commerce, a rise in smartphone usage.

The Asia-Pacific region offers the greatest growth potential for the online travel agent (OTA) industry, with India emerging as one of the most promising markets in the area. Key drivers of the online travel market include the ease and convenience of booking tickets or rooms, affordability through offers and discounts, customer service, growing trust in online payments and the ability to compare different services. Enhanced internet connectivity and smartphone use in Tier-II and Tier-III cities, combined with OTAs investing in user-friendly interfaces with regional language options, are contributing to increased regional traffic.

Indias Online Travel Industry12

The India Online Travel Market is projected to grow from USD 17.24 billion in 2024 to USD 28.40 billion by 2029, achieving a compound annual growth rate (CAGR) of 10.5% during this period. Although the sector was significantly impacted by COVID-19, its long-term growth prospects remain strong, with the pandemic serving as a consolidation opportunity for more resilient players. Domestic tourism is anticipated to recover more quickly due to substantial pent-up demand. Indian travel companies have reported a 25%-30% increase in bookings for air travel and accommodations for the Christmas and New Year holidays. Mobile apps have become a crucial platform for travel bookings, with many leading Indian travel firms offering user-friendly apps that facilitate on- the-go ticket and accommodation reservations.

Surge in smartphone users

The number of affordable smartphone users is expected to reach 1 billion by 2026, as reported by the Telecom Regulatory Authority of India (TRAI). Combined with high-speed internet connectivity, this growth is anticipated to further boost the online tourism industry.

Expansion of Telecommunication Services

Telecommunication companies are enhancing 4G and 5G services in rural areas, improving connectivity and speed for online ticket bookings. For regions with weaker internet access, online travel agents (OTAs) utilize B2B2C business models to facilitate travel bookings.

Growth of Digital Payments

The rapid adoption of Unified Payments Interface (UPI) and other digital payment methods has made online payments more convenient and reliable, shifting travel bookings from offline to online platforms.

Changing Consumer Browsing Habits

Consumers now spend considerable time online, searching and comparing options before finalizing travel bookings, reflecting a shift in browsing and purchasing behaviour.

OTA Value Proposition

OTAs are well-regarded for providing information, convenience and customer service as a comprehensive solution for travel needs. Their ability to compare various travel options appeals to price-sensitive consumers who respond to even small price differences.

Value-added Services and Benefits

OTAs offer value-added services and benefits through partnerships with banking and payment channels. These include flexible ticket types, zero cancellation fees, price protection and travel insurance, enhancing the overall booking experience. Their growing network of service providers and travel suppliers further improves their service offerings.

Indias Air Travel Industry13

India ranks as the third-largest domestic aviation market and is among the fastest-growing major aviation markets worldwide. The Indian aviation sector has experienced significant expansion, with a 15% year-over-year increase in total air passengers, reaching 376 million in FY24. Domestic air passenger traffic grew by 13% year-over-year to 306 million, while international air passenger traffic saw a 22% increase year-over-year, totalling 70 million. In FY23, domestic passenger traffic had recovered to 98% of pre-COVID levels, while international traffic had reached only 86% of pre-pandemic levels. Additionally, air cargo handled at Indian airports rose by 7% year-over-year, reaching 3.37 million tonnes in FY24.

Key Growth Drivers

Expanding Potential of Indias Civil Aviation Sector

Indias civil aviation sector is poised for significant growth, driven by rising demand, increased economic activity, tourism, higher disposable incomes, favourable demographics and expanded aviation infrastructure. Supporting this growth, the government has approved the development of 21 greenfield airports and introduced new terminal buildings to enhance passenger handling capacity, backed by a robust capital expenditure plan.

UDAN Scheme

The Ude Desh Ka Aam Nagrik (UDAN) scheme, launched in 2016, has also played a crucial role by enabling over 14.1 million domestic passengers to travel across 579 Regional Connectivity Scheme routes, connecting 85 underserved airports and promoting regional equity.

Technology-Driven Efficiency with Digi Yatra

The Digi Yatra programme is revolutionising airport efficiency through technology, having already benefited over 25 million passengers since its launch. This initiative will be rolled out across all airports in phases.

Expanding Capacity and Workforce Development

The economic growth spurring the aviation industry necessitates expanded airport capacity and raises sustainability concerns. The Directorate General of Civil Aviation reports approximately 10,000 pilots across various Indian airlines. In 2023, 1,622 commercial pilot licenses were issued, with 18% granted to women. The Ministry of Civil Aviation has responded by issuing awards for new Flying Training Organizations (FTOs) at multiple airports, supporting the sectors growth. Continued investment in infrastructure, skill development and sustainability is crucial for the future expansion of Indias aviation industry.

Indian Railway industry14

Indian Railways (IR) operates an extensive network spanning over 68,584 route kilometres and employs 12.54 lakh individuals, making it the fourth- largest network in the world under single management as of March 31, 2024. Over the past five years, capital expenditure on Indian Railways has surged by 77%, reaching Rs.2.62 lakh crore in FY24. This increase reflects substantial investments in building new lines, gauge conversion and doubling existing tracks. Indian Railways (IR) continues to focus on enhancing user experience, optimising train system management and contributing to the vision of a Viksit Bharat. In FY24, provisional figures show passenger traffic from IR totalled Rs. 673 crore, representing a 5.2% increase from the previous year.

Amrit Bharat Station Scheme

Launched in August 2023, this initiative focuses on continuous station development through master planning and phased implementation, targeting upgrades in amenities, building improvements, multimodal integration and sustainability. To date, 1,324 stations have been identified for enhancement.

Mumbai-Ahmedabad High-Speed Rail (MAHSR) Project

The 508-kilometer high-speed rail project, executed in collaboration with the Government of Japan, has achieved a physical progress of 41.7% and incurred a financial expenditure of Rs.59,291 crore. Land acquisition and civil conduct awards are completed.

Dedicated Freight Corridors (DFCs)

Two major freight corridors are under construction, the Eastern DFC (1,337 kilometres) and the Western DFC (1,506 kilometres).

GatiShakti Multi-Modal Cargo Terminals (GCTs)

The development of GCTs by private players, based on industry demand and cargo traffic potential, includes 77 commissioned terminals and 186 locations on non-railway land with in-principle approval as of March 31,2024.

Advancements in Signalling Technology

The transition from mechanical to electrical/electronic signalling systems is underway, with eight zones already converted. During FY24, Electronic Interlocking (EI) systems were provided at 443 stations, reaching a total of 3,424 stations by March 31, 2024. The Kavach automatic train protection (ATP) system covers 1,465 route kilometres, and Automatic Block Signalling (ABS) has been implemented over 582 route kilometres, with a total of 4,431 route kilometres on high-density routes.

Outlook

The Railways primary objectives include rapid capacity expansion, modernisation of rolling stock and maintenance, enhanced service quality and improved energy efficiency. Investments are being directed towards crucial areas such as dedicated freight corridors, high-speed rail projects and advanced passenger services including Vande Bharat, Amrit Bharat Express and Aastha Special Trains. High-capacity rolling stock and improved last-mile rail linkages are also prioritised.

Indias Road Infrastructure15

Significant advancements in strategic planning and increased public investment have led to substantial upgrades in the road network, enhancing its resilience and efficiency. Government and private sector capital investment grew from 0.4% of GDP in FY15 to approximately 1.0% of GDP (around Rs. 3.01 lakh crore) in FY24. The sector saw its highest-ever private investment in FY24, benefiting from a favourable policy environment.

In the past decade, the development of national highways in India has seen impressive progress, marked by substantial increases in budget allocation and construction speed. Since 2014, road transport and highway budgets have surged by 500%, leading to significant infrastructure improvements. The National Highway (NH) network has expanded by 60%, growing from 91,287 km in 2014 to 146,145 km by 2023. The length of 4-lane NHs has more than doubled, increasing from 18,387 km in 2014 to 46,179 km as of November 2023. The average construction pace of NHs has also soared by 143%, rising to 28.3 km per day from 12.1 km per day in 2014.16

Government Initiatives Bharatmala Pariyojana Overview

The Bharatmala Pariyojana aims to enhance the efficiency of transporting goods and people across India. Its main elements include the development of economic corridors, inter-corridor and feeder routes, improvement of national corridor efficiency and the construction of border and international connectivity roads, coastal and port connectivity roads and expressways. Out of the 25 proposed Greenfield high-speed corridors, 20 are either completed or in various stages of implementation. As of December 2023, 26,418 km of the planned 34,800 km for Phase-I of Bharatmala have been awarded for construction, with approximately 15,549 km completed.

Rural Road Infrastructure Advancements

Since 2014, the Pradhan Mantri Gram Sadak Yojana (PMGSY) has led to the construction of 3.74 lakh km of rural roads, connecting over 99% of rural habitations. This initiative reflects the governments dedication to improving accessibility and connectivity in rural areas. Currently, a total of 7.55 lakh km of rural roads have been completed, a significant increase from the 3.81 lakh km completed in 2013-14.

Toll Digitisation and Efficiency

Toll digitisation has dramatically reduced waiting times at toll plazas, cutting it from 734 seconds in 2014 to just 47 seconds. Additionally, free-flow tolling using Automatic Number Plate Recognition and Global Navigation Satellite System technology has been implemented to further enhance efficiency.

Development of Wayside Amenities

The plan includes the establishment of about 900 wayside amenities (WSAs) to offer top-tier facilities and services. As of now, 322 WSAs have been awarded, with 50 already operational. In FY24 alone, 162 WSAs have been awarded.

National Highway (NH) Maintenance Policy

A proactive approach to National Highway (NH) maintenance has been adopted, involving the engagement of contractual maintenance agencies for each kilometre of the NH network. Maintenance is carried out through performance-based or short-term contracts. About 37,500 km of the NH network is covered under these contracts, with long-term maintenance agreements spanning up to 20 years.

Outlook17

Recent growth in the road sector has been marked by the development of expressways and corridors, alongside initiatives aimed at enhancing user convenience and environmental sustainability. However, ongoing ribbon development along existing National Highways (NHs) presents challenges for constructing new parallel roads or bypasses. In response, the Government is shifting its focus to developing access-controlled NHs and aims to standardise all NHs to at least two lanes with paved shoulders. Additional obstacles include the slow adoption of digital land records, which delays land acquisition and the prolonged approval process for forest and other environmental clearances.

Indian Hospitality Industry18

The Indian hospitality industry is projected to grow from USD 247.31 billion in 2024 to USD 475.37 billion by 2029, reflecting a compound annual growth rate (CAGR) of 13.96% over the forecast period (2024-2029). India has emerged as a prominent global destination for both leisure and business travellers, which has significantly benefited its hospitality sector.

Domestic tourism in India has demonstrated remarkable resilience, with a growing trend of staycations among Indian residents. This shift is fuelled by factors such as convenience, safety and the opportunity to explore lesser-known attractions within the country. The hospitality and tourism sectors growth rate has notably increased.

India ranks among the top 100 countries for ease of doing business and leads globally in greenfield foreign direct investment (FDI) rankings. To further boost cruise tourism, the Government of India (GoI) is developing Chennai, Goa, Kochi, Mangalore and Mumbai ports into cruise tourism hubs, which will feature amenities such as hospitality services, retail outlets, shopping centres and restaurants.

As per the Economic Survey, 2023-24, the hospitality industry has adapted to the rising influx of tourists by enhancing guest experiences and increasing capacity. In 2023, the sector saw the addition of 14,000 new rooms, raising the total inventory of chain-affiliated rooms in India to 183,000. Hoteliers are increasingly utilising technology to personalise guest interactions and improve operational efficiency. Additionally, many hotels are innovating by leasing or managing external brands for restaurants, spas and lounges, capitalising on popular concepts to attract guests and boost revenue. In FY24, the average daily rate rose from Rs. 6,704 to Rs. 7,616, reflecting a year-on-year growth of 13.6%.

Key Growth Drivers Rising Middle-Class Affluence

Indias middle-class population is expanding rapidly, with this demographic gaining increased purchasing power and greater access to travel and hospitality services. As affordable travel options become more accessible, the middle class is increasingly eager to explore new destinations. This trend has led to a rise in mid and upscale hotels, particularly in Tier II and Tier III cities.

Youth-Driven Leisure Travel Trends

Indias young population, aged 20-45 years, along with the growing Dual Income, No Kids (DINK) demographic, is driving trends in leisure travel. Unlike previous generations, this group tends to spend more on travel and less on savings. Their travel preferences include affordable lodging, experiential journeys and technological integration. Emerging trends such as DIY and experiential travel are gaining traction.

Impact of Gen Z And Millennials on Travel

The travel industry has been reshaped by Gen Z and Millennials, particularly following the pandemics remote work shift. This has fueled a trend of revenge travel, where these generations seek to escape routine, embrace spontaneity and blend work with leisure. They prioritise unique, immersive travel experiences over material possessions and budget generously for frequent trips throughout the year.

Growth of Pilgrimage Tourism

The Indian Government has been focusing on the development of religious and pilgrimage destinations to boost spiritual tourism. Pilgrimage-based tourism now accounts for approximately 25% of the accommodation demand in the sector.

Integration of Technology in Hospitality

With the rise in digital engagement, smartphone use and internet access in India, technology is becoming more integral to the hospitality sector. Innovations in artificial intelligence (AI), machine learning (ML) and robotics are actively enhancing the industry, reflecting the growing digital appetite of the population.

Company Overview and Performance Review

Le Travenues Technology Limited, operating under the brand name ixigo, is a leading technology-driven travel company focused on empowering Indian travellers to plan, book and manage their trips across rail, air, buses and hotels. Founded in 2007, ixigo has evolved into Indias second-largest online travel aggregator (OTA), leveraging artificial intelligence, machine learning and data science to provide innovative solutions through its websites and mobile applications. The Companys platforms offer a comprehensive suite of services including ticket booking, PNR status checks, seat availability alerts, running status updates, delay predictions, and personalised recommendations.

In FY2024, ixigo continued to strengthen its market position, serving over 480 million annual active users across its group of brands including ixigo, ConfirmTkt and AbhiBus. With a focus on serving the next billion users, particularly in Tier 2 and Tier 3 cities, ixigo has established itself as a one-stop travel solution provider with high customer engagement and a loyal user base.

Further, during the Fiscal 24, the wholly owned subsidiary i.e. Confirm Ticket Online Solutions Private Limited has been amalgamated with the Company. The appointed date for the merger was fixed as April 1, 2023. The amalgamation of Confirm Ticket Online Solutions Limited shall enhance overall operational effectiveness by leveraging purchasing and procurement economies of scale, as well as achieving efficiency gains through streamlining general and administrative functions, thereby eliminating redundancies. The Companys commitment to innovation and customer-centric approach have positioned it for continued growth in Indias expanding online travel market.

Business Segments

The Company operates in several key business segments, each designed to enhance the travel experience for Indian consumers through innovative technology and user-centric services, making it a one-stop solution for Indian travellers. Our revenue streams are well-diversified across train, flight , bus and Others (hotel bookings & other ancillary services).

Train

The train ticketing is a cornerstone of ixigos business, offering comprehensive services that cater to the vast market of railway travellers in India. The company launched ixigo Trains app application to enhance the experience of Indian train travellers. Through its platforms, ixigo provides users with the ability to book train tickets, check PNR status, receive confirmation predictions and access real-time running status updates. The Companys proprietary data and AI-based platform enhance the user experience by predicting delays and offering seat availability alerts. The companys strategic acquisition of ConfirmTkt has further strengthened its position, enabling deeper penetration into Tier II and Tier III markets.

Flight

ixigo provides customers with relevant price comparisons and facilitates flight bookings at competitive rates. The flight segment at ixigo has shown remarkable growth, driven by the Companys focus on leveraging technology to enhance the customer experience. ixigo offers a variety of services including airline ticket booking, automated web check-ins, fare alerts and personalised travel recommendations. The platforms AI-driven features, such as dynamic pricing and instant refunds, have positioned ixigo as a top player in the online flight booking market. In FY2024, the flight segment saw a 77% year-over-year growth in passenger segments. ixigos partnerships with major airlines and its innovative products like Assured and Assured Flex, which offer fully refundable and reschedulable tickets, have contributed to its robust performance in this segment.

Bus

The Company integrated bus ticketing into its platform as a part of the one-stop solution strategy. Buses are the most preferred mode of transport in both urban and rural areas. The bus ticketing segment has expanded rapidly, especially after the acquisition of AbhiBus. The platform provides users with the ability to book bus tickets, check bus running status and receive delay predictions. The companys focus on offering value-added services such as Abhi Assured, which guarantees refunds and compensations for service quality issues, has enhanced customer satisfaction and loyalty.

Others (Hotel Bookings and other Ancillary Services)

The Companys hotel booking platform, though relatively new, is growing rapidly. The platform offers a range of services including hotel bookings, personalised travel itineraries through its AI- based trip planner, PLAN by ixigo and various ancillary services like travel insurance, car rentals and visa processing. The Companys strategy to cross-sell and up-sell these services to its existing user base has shown promising results. ixigos commitment to innovation and customer-centric approach is evident in its continuous investment in AI and technology to improve service offerings and operational efficiency.

Artificial Intelligence & Technology Driven Operations

Technology Sparks Operational Excellence

The companys ecosystem consists of integrated OTA platforms with both websites and mobile apps. It offers a comprehensive one-stop travel solution, targeting the next billion user market segment. The companys platforms, powered by artificial intelligence (AI), machine learning (ML) and data science, provide a seamless and efficient travel booking process.

Key Technological Innovations include:

• AI-based PNR and confirmation predictions: ixigos proprietary algorithms predict the likelihood of train ticket confirmations, helping users make informed booking decisions.

• Real-time running status and delay predictions: The platform offers real-time updates on train and bus running statuses, along with delay predictions, ensuring travellers are well-informed.

• Dynamic pricing and instant refunds: ixigos AI-driven dynamic pricing models and instant refund mechanisms enhance user trust and satisfaction.

• Automated customer support: The TARA AI chatbot provides 24/7 customer support, resolving queries and assisting with bookings without human intervention.

Value-added Services

ixigos commitment to providing a comprehensive travel solution is evident in its range of value-added services, designed to cater to diverse traveller needs:

Assured and Assured Flex: These services offer fully refundable and reschedulable tickets with AI-driven pricing, providing flexibility and peace of mind to travellers.

Abhi Assured: This service guarantees refunds and compensations of up to 150% of fare in case of not meeting service quality requirements such as delays, cancellation of bus by participating operators, and issues with the quality of buses, along with a 100% refund in case of cancellations by customers.

Average Refund Time

Personalised travel itineraries: PLAN by ixigo, a generative AI-based trip planner, creates customized travel itineraries based on user preferences.

Ancillary services: ixigo offers additional services such as seat selection, inflight meals, visa processing, travel insurance and car rentals, enhancing the overall travel experience.

Financial Performance

Consolidated Summary Statement of Profits and Loss

(Rs. in million)

S. Particulars No.	For the year ended March 31,2024	For the year ended March 31,2023	Growth (%)
Income
I Revenue from operations
Gross revenue from operations	8,318.58	6,405.47	29.87
Less: Discount	(1,759.85)	(1,392.97)	26.34
Total Revenue from operations	6,558.73	5,012.50	30.85
II Other income	92.18	163.23	(43.53)
III Total income (I+II)	6,650.91	5,175.73	28.50
Expenses
IV Employee benefits expense
Employee stock option scheme	114.68	156.23	(26.60)
Other employee benefit expenses	1,295.52	1,106.38	17.10
V Other expenses
Customer refunds / cancellation costs	1,301.61	976.27	33.32
Advertising and sales promotion	1,503.56	931.54	61.41
Partner support cost	801.51	678.77	18.08
Payment gateway charges	389.01	308.07	26.27
Distribution cost	154.09	136.41	12.96
Outsourcing cost	82.99	77.63	6.90
Other expenses	477.33	353.98	34.85
Total other expenses	4,710.10	3,462.67	36.03
VI EBITDA (III - IV - V)	530.61	450.45	17.80
VII Adjusted EBITDA	553.12	443.45	24.73
VIII Finance costs	28.86	9.49	204.11
IX Depreciation and amortization expense	129.24	108.15	19.50
X Profit / (Ioss) before share of loss of an associate, exceptional items and tax (VI - VIII - IX)	372.51	332.81	11.93
XI Share of loss of an associate, net of tax	(59.07)	-	-
XII Profit / (loss) before exceptional items and tax (X + XI)	313.44	332.81	(5.82)
XIII Exceptional Items	297.21	(126.07)	335.75
XIV Profit / (loss) before tax (XII+XIII)	610.65	206.74	195.37
XV Total tax expense/ (income)	(119.96)	(27.22)	340.71
XVI Profit / (loss) for the year (XIV- XV)	730.61	233.96	212.28

‘Adjusted EBITDA is calculated as the profit/(loss) for the year plus tax expense / (income), finance costs, depreciation and amortization expense, employee stock option scheme less other income, exceptional items, share of profit / (loss) of associate.

Total Income

Our total income comprises revenue from operations and other income. Total income increased by 28.50% from Rs. 5,175.73 million in Fiscal 2023 to Rs. 6,650.91 million in Fiscal 2024 due to an increase in the revenue from operations.

Revenue from Operations

Reconciliation of Gross and Net Revenue from Operations

(Rs. in million)

Particulars	FY 24	FY 23	Growth (%)
Gross revenue from operations	8,318.58	6,405.47	29.87
Less: Discount	(1,759.85)	(1,392.97)	26.34
Revenue from operations	6,558.73	5,012.50	30.85

Gross revenue from operations increased by 29.87% from Rs. 6,405.47 million in Fiscal 2023 to Rs. 8,318.58 million in Fiscal 2024. This increase was primarily led by the growth in Gross Transaction Value (GTV), which increased by 37.98% from Rs. 74,524.30 million in Fiscal 2023 to Rs. 102,825.49 million in Fiscal 2024. This increase in GTV was due to increased volume of transactions on our platforms.

Break-up of Revenue from Operations

Revenue from contracts with customers primarily includes Ticketing Revenue, Advertisement revenue and Other Operating Revenue.

(Rs. in million)

Particulars	FY 24	FY 23	Growth (%)
Ticketing revenue	6,056.77	4,670.33	29.69
Advertisement revenue	292.13	240.86	21.29
Other Operating Revenue	209.83	101.31	107.12
Total revenue from contracts with customers	6,558.73	5,012.50	30.85

Net total revenue from contracts with customers, increased by 30.85% from Rs. 5,012.50 million in Fiscal 2023 to Rs. 6,558.73 million in Fiscal 2024 and was primarily driven by (i) significant increase in ticketing revenue by 29.69% from Rs. 4,670.33 million in Fiscal 2023 to Rs. 6,056.77 million in Fiscal 2024 as a result of an increase in the number of transactions on our OTA platforms. Increase in SAAS revenue included in Other operating revenue by 127.03% from Rs. 75.34 million in Fiscal 2023 to Rs. 171.05 million in Fiscal 2024.

Other Income

Other income primarily includes (i) interest income on deposits with banks and other interest income, (ii) gain on change in fair value of investments, (iii) gain on sale of investments, (iv) Excess liabilities / provision written back and (v) miscellaneous income.

Other income decreased from Rs. 163.23 million in Fiscal 2023 to Rs. 92.18 million in Fiscal 2024, primarily due to reduction in one off provision written back of Rs. 97.46 million in Fiscal 2023.

Expenses

Our expenses comprise (i) employee benefits expense, (ii) finance costs, (iii) depreciation and amortization expenses and (iv) other expenses

Total expenses increased by 29.64% from Rs. 4,842.92 million in Fiscal 2023 to Rs. 6,278.40 million in Fiscal 2024.

(i) Employee Benefits Expense

Employee benefits expense comprises (i) salaries, wages, and bonus; (ii) contribution to the provident and other funds; (iii) gratuity expense; (iv) employee stock option scheme expense; and (v) staff welfare expenses.

Employee benefits expense increased by 11.69% from Rs. 1,262.61 million in Fiscal 2023 to Rs. 1,410.20 million in Fiscal 2024, primarily due to an increase in Salaries, wages, and bonus by 17.23% on account of annual increment .

(ii) Finance Costs

Finance costs comprise interest on borrowings and interest on lease liability.

Finance costs increased from Rs. 9.49 million in Fiscal 2023 to Rs. 28.86 million in Fiscal 2024 primarily due to an increase in interest on borrowings from Rs. 1.45 million in Fiscal 2023 to Rs. 10.29 million in Fiscal 2024. As well as increase in interest on lease liability from Rs. 8.04 million in Fiscal 2023 to Rs. 18.57 million in Fiscal 2024.

(iii) Depreciation and Amortization Expenses

Depreciation and amortization expenses comprises (i) depreciation on property, plant and equipment; (ii) depreciation on right of use; and (iii) amortization of intangible assets.

Depreciation and amortisation expense increased by 19.50% from Rs. 108.15 million in Fiscal 2023 to Rs. 129.24 million in Fiscal 2024, primarily due to an increase in Depreciation on right-of-use assets by 92.85% from Rs. 15.52 million in Fiscal 2023 to Rs. 29.93 million in Fiscal 2024.

(iv) Other Expenses

Other expenses include, amongst others (i) distribution costs; (ii) partner support cost; (iii) customer refunds / cancellation costs; (iv) advertising and sales promotion; (v) payment gateway charges; (vi) outsourcing cost; and (vii) other overheads

Other expenses increased by 36.03% from Rs. 3,462.67 million in Fiscal 2023 to Rs. 4,710.10 million in Fiscal 2024, primarily due to following:

(Rs. in million)

Particulars	FY 24	FY 23	Growth (%)	Reason of change
Customer refunds / cancellation costs	1,301.61	976.27	33.32	• Increase in free cancellation transactions across all business segments led to increase in expense.
Advertising and sales promotion	1,503.56	931.54	61.41	• We incurred expenses in branding activity for increasing our market presence and increase customer awareness.
Partner support cost	801.51	678.77	18.08	• Increased primarily on account of increased train bookings.
Payment gateway charges	389.01	308.07	26.27	• Increased on account of overall rise in the GTV.
Distribution cost	154.09	136.41	12.96	• Increased on account of increase in transactions with distribution partner.
Outsourcing cost	82.99	77.63	6.90	• Increased operations led to marginal increase in outsourcing cost.
Other Overheads	477.33	353.98	34.85	• Increase on account of overall increase in business operations.
Total other expenses	4,710.10	3,462.67	36.03

EBITDA and Adjusted EBITDA

The EBITDA of the company for FY 24 is Rs. 530.61 million as compared to Rs. 450.45 million for FY 23. We continued to deliver positive Adjusted EBITDA of Rs. 553.12 million in FY 24, as compared to Rs. 443.45 million in FY 23. Increase in EBITDA and Adjusted EBITDA is primarily on account of significant growth in overall business operations of the Group.

Exceptional Items

During the year ended 31 March 2024 the Company booked a one-time gain on account of Rs. 297.21 million on account of loss of control in a subsidiary company. Whereas in FY 2023 the Company has charged off Rs. 126.07 million as exceptional item in Statement of Profit and Loss. Rs. 71.29 pertains to share issue expenses and Rs. 54.78 related to provision taken against the advance lying with Go Airlines (India) Limited ("Go Air") for purchase of tickets and other dues.

Cautionary statement

This statement made in this section describes the Companys objectives, projections, expectation and estimations which may be forward looking statements within the meaning of applicable securities laws and regulations. Forward- looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realised by the Company. Actual result could differ materially from those expressed in the statement or implied due to the influence of external factors which are beyond the control of the Company. The Company assumes no responsibility to publicly amend, modify or revise any forwardlooking statements on the basis of any subsequent developments.