Le Travenues Technology Limited (ixigo) IPO Company Profile :
Le Travenues Technology Limited is a technology company focused on empowering Indian travelers to plan, book, and manage their trips across rail, air, buses, and hotels. The company assists travelers in making smarter travel decisions by leveraging artificial intelligence, machine learning, and data science-led innovations on its OTA (“Online Travel Agency”) platforms, comprising its websites and mobile applications. The company’s focus is on travel utility and customer experience for travelers in the ‘next billion user’ segment is driven by technology, cost-efficiency and its culture of innovation has made it India’s leading travel ecosystem for the ‘next billion users’.
Le Travenues Technology Limited is the largest Indian OTA in the online train bookings segment and its train-centric mobile applications, ixigo trains, and ConfirmTkt, were collectively the leading B2C distribution platforms for IRCTC with 42% market share, in terms of rail bookings among the OTAs and B2C distributors of IRCTC in Fiscal 2021. Our bus-focused app, AbhiBus, was the second largest bus-ticketing OTA in India, with a 10% market share in online bus ticket bookings, in Fiscal 2021. The company is also the third largest flight OTA in India with a market share of 12% in online air bookings in Fiscal 2021. In the first quarter of Fiscal 2021, the ixigo trains mobile app was the 10th most downloaded travel and navigation app globally.
Le Travenues Technology Limited (ixigo) IPO Business Operations:
- Flights:
ixigo commenced operations in 2007 in the flight vertical by launching a travel meta-search website that enabled travelers to research and compare relevant price information and book their preferred flight in a cost-efficient and informed manner. Subsequently, the company transitioned to an OTA model in Fiscal 2020 where it allowed users to buy flight tickets on the platform with bookings generated directly on its platform. In the OTA model, the company operates as the merchant of record for transactions and works directly with suppliers and airlines to enable domestic and international flight ticketing on its platform. ixigo is accredited by IATA to promote and sell international air passenger transportation.
- Trains:
the company launched the ixigo trains mobile app for android in 2013 as a utility app with the objective of improving the experience of Indian train travelers by allowing them to search for train-related information and providing utility services, such as providing updates on the status of their PNR numbers, that helped them make a travel decision. Subsequently, in 2017, the company commenced selling train tickets as a B2C ticketing principal service provider for IRCTC along with its existing travel offerings, including flights, buses, and hotels, within the ixigo trains mobile app to offer a comprehensive ‘one-stop’ travel solution with a focus on the ‘next billion user’ market segment with both utility and booking use cases combined together. In February 2021, the company acquired Confirm Ticket, a train-utility, and ticketing-focused company.
- Buses:
The bus is the most preferred mode of travel for the teeming masses in both urban and rural India, accounting for the largest share of 65% of all transportation used in India. With the aim to become a comprehensive ‘one-stop’ travel solution, the company introduced bus ticketing on its platform in 2016. The company sells bus tickets by partnering either directly with operators or source inventory from bus ticketing aggregators in the country. To consolidate its position in the bus segment, the company has recently acquired the business of AbhiBus, pursuant to a business transfer agreement with effect from August 1, 2021. AbhiBus has also partnered with IRCTC to offer bus tickets to IRCTC users by integrating AbhiBus’s bus ticket inventory on IRCTC’s platforms through API. AbhiBus is the second largest bus OTA with a market share of 10% in the online market.
Le Travenues Technology Limited (ixigo) IPO Details:
| IPO Open Date | Not Disclosed |
| IPO Close Date | Not Disclosed |
| Listing Date | Not Disclosed |
| Face Value | ₹1 per share |
| Price | Not Disclosed |
| Lot Size | Not Disclosed |
| Issue Size | [.] shares (aggregating up to ₹1,600 Cr) |
| Fresh Issue | [.] shares (aggregating up to ₹750 Cr) |
| Offer for Sale | [.] shares
(aggregating up to ₹850 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| QIB Shares Offered | Not more than 75% of the Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Offer |
| Retail Shares Offered | Not less than 10% of the Offer |
Le Travenues Technology Limited (ixigo) IPO financial analysis:
| Particulars | Q1 FY-23(in cr.) | FY-22(in cr.) | FY-21(in cr.) | FY-20(in cr.) | CAGR |
| Revenue from operations | 118.84 | 379.58 | 135.57 | 111.60 | 50.4% |
| Other Income | 10.07 | 5.36 | 2.84 | 1.36 | |
| Employee Cost | 30.25 | 95.16 | 34.80 | 34.39 | |
| Change in fair valuation of preference shares | 0.00 | 0.00 | 0.00 | 20.03 | |
| Other expenses | 86.38 | 296.74 | 97.47 | 81.64 | |
| EBITDA | 12.28 | -6.95 | 6.14 | -23.10 | -33.0% |
| EBITDA margin% | 10.33% | -1.83% | 4.53% | -20.69% | |
| Depreciation | 2.37 | 7.84 | 1.89 | 2.27 | |
| Interest | 0.16 | 2.80 | 1.55 | 1.25 | |
| PBT | 9.74 | -17.60 | 2.71 | -26.61 | -12.9% |
| Total tax | 1.01 | 3.49 | -4.83 | 0.00 | |
| PAT | 8.74 | -21.09 | 7.53 | -26.61 | -7.5% |
| PAT margin% | 6.78% | -5.48% | 5.44% | -23.56% | |
| Dep./revenue% | 2.00% | 2.07% | 1.39% | 2.03% | |
| Int./revenue% | 0.14% | 0.74% | 1.14% | 1.12% |
Pre-Offer shareholding of the Selling Shareholders:
| S. No. | Name of the Selling Shareholder | Number of Equity Shares held on a fully diluted basis | Percentage of equity share capital on a fully diluted basis (%) |
| 1. | Aloke Bajpai | 33,922,000 | 9.18% |
| 2. | Rajnish Kumar | 32,494,800 | 8.79% |
| 3. | SAIF Partners | 88,563,200 | 23.97% |
| 4. | Micromax | 28,110,400 | 7.61% |
| Total | 183,090,400 | 49.55% |
Le Travenues Technology Limited (ixigo) IPO Strengths:
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Le Travenues Technology Limited is a market leader with deep penetration in the underserved ‘next billion user’ segment with the highest Monthly Active Users across all OTAs. The number of transactions booked through the OTA platforms has increased at a CAGR of 41.59% from 4.27 million in Fiscal 2019 to 8.56 million in Fiscal 2021. In Fiscal 2021, ixigo trains and ConfirmTkt were collectively the leading B2C distribution platforms for IRCTC with a 42% market share in terms of rail booking among OTAs and B2C distributors of IRCTC. The company was the third largest Indian flight distributor and it had a market share of 12% in online air bookings in Fiscal 2021.
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Le Travenues Technology Limited is an AI and technology-driven company. Technology forms the basis for its operating leverage and is instrumental in achieving significant efficiencies in its business processes and operations. The company uses artificial intelligence, data science, and machine learning to transform its travel information and crowd-sourced data into business intelligence that enhances its travel offerings and improves its operating efficiency.
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ixigo is a strong consumer travel brand built with a user-first approach, ixigo is the top-ranked OTA App on Google Play Store as of July 2021 and it had the highest usage and engagement among all key OTA players and standalone transactional train mobile apps in India in Fiscal 2021 in terms of MAUs and sessions per user per month. In addition to the personal travel assistant TARA, the company has a dedicated self-service customer service section, which provides the option to contact it through chat or call, as well as dedicated personnel available 24 hours a day, seven days a week, who provide assistance to its users on a real-time basis.
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Company has Strong unit economics with high operating leverage and organic flywheel. It attributes the consistent growth in its business to its technology-driven operations and low operational costs that results in comparatively higher operating margins that are improving with scale.
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Le Travenues Technology Limited has benefited from the investments by SCI Investments, an affiliate of Sequoia Capital, Elevation Capital (formerly SAIF Partners), among other investors, and the support of their nominee directors on its board. The company has benefitted from the capital infusion and professional expertise of its shareholders.
Le Travenues Technology Limited (ixigo) IPO Risk Factors:
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The company’s train ticketing services depend on its agreement with IRCTC. The termination of its agreement with IRCTC could preclude it from undertaking its train ticketing services and could otherwise have a material adverse effect on its results of operations, cash flows, financial condition, and business prospects.
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If the company fails to maintain and enhance its brands “ixigo”, “ConfirmTkt” and “AbhiBus” or if it fails to maintain the quality of customer service, it may face difficulty in maintaining existing and acquiring new users and business partners and its business may be harmed.
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The company has a history of net losses and it anticipates increased expenses in the future. Any loss in future periods could adversely affect its operations and financial conditions and the trading price of its Equity Shares.
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Some of the travel suppliers may reduce or eliminate the commission, incentive and other compensation they pay to the company for the sale of tickets and this could adversely affect its business, cash flows, and results of operations.
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The company has a limited experience and operating history in certain of its businesses, particularly in hotels and cab services, which makes it difficult to accurately assess its future growth prospects and may negatively affect its business, financial condition, cash flows, and results of operations.
Objects of the Offer:
The Company proposes to utilize the Net Proceeds towards funding the following objects:
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Organic growth initiatives, including discounts and other promotional incentives, sales, marketing, and distribution expenses, and investments in the development of technology infrastructure
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Inorganic growth through acquisitions and other strategic initiatives
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General corporate purposes
Le Travenues Technology Limited (ixigo) IPO Prospectus:
Registrar to the offer:
Link Intime India Private Limited
C-101, 1stFloor, 247 Park
L.B.S. Marg, Vikhroli (West)
Mumbai 400 083
Maharashtra, India
Tel: (+ 91 22) 4918 6200
E-mail: ixigo.ipo@linkintime.co.in
Website: www.linkintime.co.in
Investor grievance E-mail: ixigo.ipo@linkintime.co.in
Contact person: Shanti Gopalkrishnan
SEBI Registration No.: INR000004058
Le Travenues Technology Limited (ixigo) IPO FAQ
Ans. Le Travenues Technology Limited (ixigo) IPO will comprise fresh share issue and new offer share issue. The company aims to go public to accelerate its growth and expansion plan.
Ans. The company will open for subscription on <>.
Ans. The minimum lot size that investors can subscribe to is <> shares.
Ans. The Le Travenues Technology Limited (ixigo) IPO listing date is <>.
Ans. The minimum lot size for this upcoming IPO is <> shares.