Le Travenues Technology Limited (MAINBOARD)

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ixigo IPO Details

Company Financials

About Company

Le Travenues Technology Limited, founded in 2006, operates as an online travel agency (OTA) under the brand name "ixigo," facilitating the booking of train, flight, and bus tickets, as well as hotel reservations. With services such as PNR status and confirmation predictions, train seat availability alerts, and AI-based travel planning, ixigo provides comprehensive travel solutions. The company’s platforms include the ixigo trains and Confirmtkt app, which streamline train travel booking and information access; the ixigo-flights mobile app for booking air, train, bus tickets, and hotels; and the Abhibus app for bus travel comparisons and bookings. With 83 million monthly active users as of September 2023, ixigo has the highest app usage among OTAs. Recent innovations include ixigo PLAN, an AI-based travel planner, and ixigo Assured Flex, offering flexible cancellation or rebooking options. As of December 31, 2023, ixigo employed 486 full-time employees and 4 consultants.

Strength Factors

Leading OTA for Next Billion Users (NBUs): Ixigo dominates the OTA market for NBUs, focusing on localized content and app features tailored for Tier II/III travelers. In Fiscal 2023, 94.39% of its transactions originated from or were destined for smaller towns and cities, with significant cross-selling of flight bookings to users of its ixigo trains, ConfirmTkt, and AbhiBus apps.

Advanced Technology and AI Integration: Ixigo leverages artificial intelligence, data science, and machine learning to enhance its travel offerings and operational efficiency. Its proprietary algorithms for search, caching, PNR prediction, and crowd-sourcing transform travel data into actionable business intelligence, improving user experience and solving common travel issues.

Strong Brand Presence and User Loyalty: Ixigo's apps are highly rated (4.6 on Google Play Store as of November 2023) and boast the highest usage and engagement among key OTAs in India. The company has seen substantial growth in Monthly Active Users, reaching 77.04 million in December 2023, with a high Repeat Transaction Rate of over 85% in Fiscal 2023 and the nine months ended December 31, 2023.

Risk Factors

Limited Operating History as an OTA: Ixigo originally started as a meta search website and has only recently transitioned to an OTA. This limited experience may impact its ability to maintain or grow its market share, which was 6.52% and 5.88% by GTV in the nine months ended December 31, 2023, and December 31, 2022, respectively.

Dependency on IRCTC Agreement: Ixigo’s train ticketing services rely heavily on its agreement with IRCTC. Termination of this agreement would severely impact its ability to provide train ticketing services, which could materially affect its operations, financial condition, and business prospects.

Market Price Uncertainty Post-Listing: The Offer Price, market capitalization to revenue multiple, and price to earnings ratio based on the Offer Price might not reflect the company's market price upon listing or thereafter, leading to potential volatility and uncertainty in the stock's performance.

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