AI-Powered Travel Company Ixigo Restarts IPO Process

Gurugram-based travel aggregator LE Travenues Technology, the parent company of online travel aggregator (OTA) Ixigo, has refiled draft papers with the Securities and Exchange Board of India (SEBI) for an upcoming initial public offering (IPO). The IPO comprises a fresh issuance of shares amounting to Rs 120 crore and an offer-for-sale (OFS) of 6,66,77,674 equity shares by existing shareholders.

The startup is supported by SAIF Partners India IV, Peak XV, and Micromax. In the OFS, SAIF Partners India IV and Peak XV Partners Investments V (formerly known as SCI Investments V) will be the major selling shareholders, contributing 1.94 crore equity shares and 1.3 crore shares, respectively. Founders Aloke Bajpai and Rajnish Kumar will each offload 1.19 crore equity shares. Micromax Informatics, Placid Holdings, Catalyst Trusteeship, and Madison India Capital HC will collectively sell the remaining 1.03 crore shares.

History of IPO Filing

LE Travenues had previously filed a draft red herring prospectus in August 2021, aiming to raise Rs 1,600 crore through an IPO. The initial plan included a fresh issue of shares worth Rs 750 crore and an OFS of Rs 850 crore by existing shareholders. Although regulatory approval was obtained in June 2023, the IPO launch did not proceed at that time.

About LE Travenues Technology and Ixigo

Founded in 2007 by Aloke Bajpai and Rajnish Kumar, Ixigo is an AI-based travel app that competes with listed peers EaseMyTrip and Yatra Online. The platform assists Indian travelers in planning, booking, and managing trips across rail, air, buses, and hotels.

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

Potential Pre-IPO Placement and Utilization of Funds

The company may explore pre-IPO placement for fundraising up to Rs 24 crore before filing the red herring prospectus. Net fresh issue proceeds will see Rs 45 crore allocated for working capital, Rs 25.8 crore for cloud infrastructure and technology, and the remaining amount for inorganic growth through acquisitions, strategic initiatives, and general corporate purposes.

Market Overview and Financial Performance

The total Indian travel market, encompassing air, rail, road, and hotels, is estimated at around Rs 3.8 lakh crore in FY23, projected to grow at a CAGR of approximately 9% to reach Rs 5.8 lakh crore by FY28. In FY23, LE Travenues reported a consolidated net profit of Rs 23.4 crore, compared to a loss of Rs 21.09 crore in the previous year. Revenue from operations increased to Rs 501.25 crore from Rs 379.6 crore during the same period. For the nine-month period ending December FY24, the company recorded a net profit of Rs 65.7 crore, a substantial increase from Rs 18.66 crore in the corresponding period the previous year. Revenue from operations for the same period stood at Rs 491.02 crore, reflecting a 35% YoY growth.

As LE Travenues Technology prepares to go public, the market eagerly awaits further developments in this dynamic sector.

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