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YATRA Online Limited IPO Company Profile :

YATRA Online Limited is India’s largest corporate travel services provider and the second-largest online travel company in India among key Online Travel Agency (OTA) players in terms of gross booking revenue and operation revenue, for Fiscal 2020. The company has the largest number of hotel and accommodation tie-ups amongst key OTA players with over 2,094,000 tie-ups, as on October 29, 2021. Leisure and business travellers use the company’s mobile applications, website, www.yatra.com, and other offerings and services to explore, research, compare prices and book a wide range of travel-related services. These services include domestic and international air ticketing on nearly all Indian and international airlines, as well as bus ticketing, rail ticketing, cab bookings, and ancillary services within India. The company also provides access through its platform to hotels, homestays, and other accommodations, with approximately 93,500 hotels in approximately 1,400 cities and towns in India and more than two million hotels globally, which is the largest hotel inventory amongst key Indian OTA players. The company also provides customers with access to holiday packages and other activities such as visa facilitation, tours, sightseeing, shows, and events.

YATRA Online Limited IPO Products and Services:

  • Airline Tickets:

    The airline ticketing business is primarily targeted to domestic air passengers and international travel from India. The company can access the real-time inventory via GDS service providers such as Amadeus and Galileo or through a “direct connect” to the airlines. The company has relationships with all major airlines operating in India, domestic and international such as Air Asia, Air India, Air India Express, Go First, IndiGo, SpiceJet, Vistara, and international airlines such as Air France-KLM, British Airways, Emirates, Etihad Airways, Lufthansa, Malaysia Airlines, Singapore Airlines, Thai Airways, and Qatar Airways, etc. The company charges its customers a service fee for booking airline tickets and receives fees from its GDS service providers based on the volume of sales completed by it through GDS.

  • Hotels and Holiday Packages:

    With approximately 93,500 hotels and homestays contracted in approximately 1,400 cities across India, YATRA Online Limited is India’s largest platform for domestic hotels. In the fiscal year 2021, more than 500,000 standalone hotel room nights were booked through the platforms, while more than 350,000 room nights have been booked from April to September 2021. Holiday package offerings consist of both fixed departure and customized holiday packages where most elements of their travel, including flights, hotels, sightseeing, transport, visa, and insurance, are all taken care of. Revenue from the Hotels and Packages business includes commissions and markups that the company earns for the sale of stand-alone hotel rooms and packages.

  • Other Travel Products and Services:

    Other Travel Products and Services include rail ticketing, bus ticketing, cab booking, and yatra freight.

YATRA Online Limited IPO Financial Analysis:

Particulars 6M FY-22(in cr.) FY-21(in cr.) FY-20(in cr.) FY-19(in cr.) CAGR
Revenue 74.75 125.45 673.33 844.72 -47.0%
Operating cost 7.64 9.96 262.52 592.38  
Empl. Cost 49.06 73.63 165.77 247.37
Other exp 28.96 64.28 198.33 330.17
EBITDA -10.91 -22.42 46.71 -325.20 -59.0%
EBITDA margin% -14.60% -17.87% 6.94% -38.50%  
Depreciation 14.77 51.3 62.26 61.68
Interest 4.79 10.24 18.07 16.24
PBT -30.47 -83.96 -33.62 -403.12 -40.7%
Total tax 0.31 6.63 3.95 5.33
PAT -30.78 -90.59 -37.57 -408.45 -39.5%
Dep./revenue% 19.76% 40.89% 9.25% 7.30%
Int./revenue% 6.41% 8.16% 2.68% 1.92%

YATRA Online Limited IPO Revenue by Product types:

Segment 6M FY-22(in cr.) % FY-21(in cr.) % FY-20(in cr.) % FY-19(in cr.) %
Air Ticketing 49.49 66.23% 89.31 71.19% 261.39 38.82% 344.93 40.83%
Hotel & Packages 13.25 17.73% 15.66 12.48% 307.47 45.66% 400.31 47.39%
Other services 5.26 7.04% 3.14 2.50% 5.78 0.86% 5.63 0.67%
Advertising revenue 6.72 8.99% 17.34 13.82% 98.69 14.66% 93.85 11.11%
Total 74.72 100.00% 125.45 100.00% 673.33 100.00% 844.72 100.00%

YATRA Online Limited IPO Strengths:

  • The strength of the brand is reflected in the fact that over 90% of the company’s total traffic has come from direct and organic traffic (which are visitors who enter the company’s website through unpaid search results without any intermediary) for Fiscal 2020 and 2021. To further strengthen the brand, the company has, from time to time, signed up some of India’s leading celebrities as brand ambassadors in the past

  • Large and Loyal Customer Base with a booking success rate of 98.7% on the websites and mobile applications in the B2C channel for domestic transactions during the period April to September 2021. The Company has served approximately 700 large corporate customers and the customer retention rate has improved from approximately 96% in Financial Year 2020 to approximately 97% in Financial Year 2021 and approximately 98% for six months ended September 30, 2021.

  • YATRA Online Limited has designed a unique “go-to-market” strategy that is a mix of B2C and B2B. This comprehensive approach creates strong network effects resulting in significant cross-sell between business and leisure travelers, which it believes addresses the entire travel market in India. The company is India’s largest corporate travel services provider and the second-largest online travel company in India among key OTA players in terms of gross booking revenue and operating revenue, for Fiscal 2020.

  • To ensure that Yatra remains a market-leading Travel-Technology platform, the company will continue investing in the common technology platform in order to ensure that it can introduce new product offerings in an efficient and timely manner and deliver on the vision of being a ‘one-stop-shop’ for the customers when it comes to travel and travel related products.

YATRA Online Limited IPO Risk factors:

  • The Indian travel industry is highly competitive. Company’s success depends upon its ability to compete effectively against numerous established and emerging competitors, including other online travel agencies, or OTAs, traditional offline travel companies, travel research companies, payment wallets, search engines, and meta-search companies, both in India and abroad, such as MakeMyTrip Limited, Cleartrip Private Limited, Easy Trip Planner Limited, Thomas Cook India Limited, FCM Travel Solutions India Private Limited, GBT India Private Limited, CWT India Private Limited, Le Travenues Technology Private Limited, TripAdvisor and Trivago and in each case including their affiliated and group entities.

  • YATRA Online Limited is dependent on the airline ticketing business, which generates a significant percentage of its revenues and is derived from a small number of airline suppliers in India. If these airlines increasingly engage directly with customers or other similar online travel agencies, as applicable, or are unable to pay the company in a timely manner or at all, whether due to the deterioration of their financial position, an economic downturn, internal conflicts or any other reason, the company’s business, financial condition, results of operations, cash flows and prospects could be materially and adversely affected.

  • Air India has moved to a single GDS service provider platform for its domestic inventory; there can be no assurance that other airline suppliers will not institute similar measures

  • Yatra Online, Inc. delivered to Ebix Inc. (“Ebix”) the notice of termination of the merger agreement with Ebix and filed litigation in the Court of Chancery of the State of Delaware based upon Ebix’s breaches of the merger agreement and an ancillary extension agreement. In addition, Yatra Online, Inc. also sued Ebix for fraud and sued Ebix’s consortium of lenders for tortious interference with contractual relations. The termination of the merger with Ebix Inc. and related legal proceedings may materially and adversely affect our results of operations.

  • YATRA Online Limited has incurred losses in the past and may incur losses in the future. The ability to operate profitably depends upon a number of factors, some of which are beyond its control.

Source: YATRA Online Limited DRAFT RED HERRING PROSPECTUS (DRHP)