Ixigo IPO coming soon: Check IPO details, price band, financials & more

Ixigo IPO
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Le Travenues Technology (Ixigo), a Gurugram-based online travel ticket aggregator, which operates a travel platform, has filed its draft red herring prospectus (DRHP) to raise Rs 1,600 Cr through the initial public offering. Yesterday, Ixigo received approval from the Securities and Exchange Board of India. While the Ixigo IPO date has not yet been announced, media reports indicate that the listing could be in January or February.

About Ixigo:

  • Launched in 2007, Ixigo 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, machine learning and data science-led innovations on OTA platforms, comprising their websites and mobile applications.

Ixigo: Evolution of the business 

Source: Ixigo IPO DHRP

Ixigo Financials

  • Ixigo’s Total Income has grown at an impressive CAGR of 79.15% from FY19 to FY21. Ixigo had reported a Total Income of Rs 138 crore in FY21.
  • Ixigo has only recently posted a profit of Rs 8 cr in FY21. It was loss-making before that.
  • The company has also drastically reduced its total borrowings from Rs 216 cr in FY19 to Rs 15 cr in FY21.

Ixigo Peer Analysis:

  • Ixigo is the 2nd largest player among its peers by revenue and gross transaction value (GTV). 
  • The company has the lowest employee count among its peers and the highest GTV per employee, indicating higher efficiency.
  • Other operational metrics like Monthly Downloads and Monthly Active Users (MAU) are also the highest among the peers.
  • Highest app reviews and app rating convey high customer satisfaction.

Ixigo’s suite of Apps 

 

Multi-app strategy: ixigo Flights is an air travel and hotel reservation app that targets consumers mainly from Tier I cities. ixigo Trains helps people to find information on intercity trains in India. Their dual-app in trains and flights has allowed them to be relevant to both the most evolved Tier I travellers and the aspiring Tier II/III/IIII travtravellersxigo acquired ConfirmTkt and Abhibus in 2021. ConfirmTkt helps a user cleverly choose a travel itinerary. It predicts the chances of a waiting list clearing on the basis of the train’s booking history. It also acquired Abhibus, which aimed at consolidating its presence in Tier II/III/IV markets by “offering a multi-modal transportation experience” to the combined user base of 255 million users. 

Ixigo’s market share in Trains and Flights 

 

 

Source: DHRP

Ixigo: Revenue Split 

  • Ixigo was able to significantly increase its ticketing revenue in FY21 to Rs 126 crore, a 107% jump YoY. Ticketing revenue made up more than 93% of the overall revenue of ixigo in FY21. 
  • However, advertisement revenues have fallen significantly, impacted by the Covid-19 pandemic. 

Ixigo Risk Factors:

  • Covid disruptions: The COVID-19 pandemic has had, and is expected to have, a material adverse effect on the travel industry and their business, financial condition, results of operations and cash flows.
  • Industry headwinds: A general decline or disruptions in the travel industry may materially and adversely affect their business and results of operations.
  • Dependence on IRCTC: Train ticketing services depend on their agreement with IRCTC. The termination of the agreement with IRCTC could preclude them from undertaking train ticketing services and could otherwise have a material adverse effect on the results of operations, cash flows, financial condition and business prospects. 
  • Risk of lower commissions: Some of their travel suppliers may reduce or eliminate the commission, incentive and other compensation they pay to them for the sale of tickets and this could adversely affect the business, cash flows and results of operations.

Ixigo IPO: INDmoney review

Ixigo has reported a healthy 79% CAGR rise in its total income between FY19 and FY21, despite the pandemic. The company also turned profitable in 2021, clocking in Rs 8 crore in Profits as compared to a loss of Rs 27 crore in the previous year. The company has also shown very good business metrics in comparison to its peers. The price band is yet to be revealed. We will be able to share our take on the Ixigo ipo valuations after more details are announced.  Stay tuned for our view on the company’s valuations, and the final recommendation. 

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