Ixigo Refiles for IPO: Travel Aggregator Seeks ₹120 Crore Fresh Issue, Eyes AI-Powered Growth

15 Feb 2024 , 09:50 AM

Artificial intelligence-driven travel company LE Travenues Technology, backed by prominent investors including SAIF Partners India IV, Peak XV, and Micromax, has refiled draft papers with SEBI for fundraising via an initial public offering (IPO).

According to preliminary papers filed on February 14, the IPO comprises a mix of fresh issuance of shares worth ₹120 Crore and an offer-for-sale (OFS) of 6,66,77,674 equity shares by existing shareholders.

SAIF Partners India IV and Peak XV Partners Investments V (formerly known as SCI Investments V) are set to be the largest selling shareholders in the OFS, with 1.94 Crore and 1.3 Crore equity shares, respectively. Additionally, Aloke Bajpai and Rajnish Kumar will offload 1.19 Crore equity shares each in the OFS, with the remaining shares being sold by Micromax Informatics, Placid Holdings, Catalyst Trusteeship (erstwhile Milestone Trusteeship Services), and Madison India Opportunities Trust Fund.

Previously, the Gurugram-based travel aggregator had filed a draft red herring prospectus in August 2021 to raise ₹1,600 Crore through an IPO. However, while it received regulatory approval to launch the IPO in June 2023, it did not proceed with the launch.

Founded by Aloke Bajpai and Rajnish Kumar in 2007, Ixigo, the AI-based travel app, competes with listed peers EaseMyTrip and Yatra Online. The platform assists Indian travelers in planning, booking, and managing trips across various modes of transportation and accommodation.

Aloke Bajpai, the Chairman, Managing Director, and Group CEO of the company, holds a bachelor’s degree in technology from IIT Kanpur and a master’s degree in business administration from INSEAD. Rajnish Kumar, the Director and Group Co-CEO, holds a bachelor’s degree in technology from IIT Kanpur.

SAIF Partners holds the largest stake in LE Travenues with 23.40%, followed by Peak XV with 15.68%, and Gamnat with 9.68%. Founders Rajnish Kumar and Aloke Bajpai, now public shareholders, hold 8.52% and 8.15% shares, respectively, while Micromax holds a 5.81% stake.

The company may consider raising up to ₹24 Crore in a pre-IPO placement before filing the red herring prospectus with the Registrar of Companies.

Proceeds from the net fresh issue amounting to ₹45 Crore will be allocated for working capital requirements, ₹25.8 Crore for cloud infrastructure and technology, and the remaining for inorganic growth through acquisitions, strategic initiatives, and general corporate purposes.

The Indian travel market, encompassing air, rail, road, and hotel segments, is estimated to be around ₹3.8 lakh Crore in FY23, projected to grow at a CAGR of around 9% to reach ₹5.8 lakh Crore by FY28.

Ixigo’s parent company, Le Travenues Technology, recorded a consolidated net profit of ₹23.4 Crore for FY23, compared to a loss of ₹21.09 Crore in the previous year, with revenue from operations increasing to ₹501.25 Crore from ₹379.6 Crore. In the nine-month period ended December FY24, the company achieved a net profit of ₹65.7 Crore and revenue from operations of ₹491.02 Crore.

Axis Capital, DAM Capital Advisors, and JM Financial are appointed as merchant bankers for the issue.