Ixigo has decided to move forward with its initial public offering (IPO) after raising INR 3.33 billion from anchor investors. The company believes that the travel industry is entering a “golden era” and is strategically positioning itself to take advantage of the ideal market conditions for growth. Despite delays in launching the IPO in 2022 due to unfavorable conditions for tech stocks, Ixigo is now confident in its decision to refile in 2024 after two consecutive profitable years.
The decision to refile for the IPO in mid-February 2024 was driven by the company’s strong financial performance, with fiscal 2023 reporting nine months of profits and fiscal 2024 showing even stronger financial health. Ixigo is now looking to raise INR 7.4 billion through the IPO, focusing on key areas such as working capital requirements, enhancing customer experiences through technology, and potential future acquisitions. The company aims to leverage AI and cloud infrastructure to automate and enhance various aspects of the travel experience.
Ixigo’s strategic focus on technology and AI has set it apart in the competitive OTA landscape, enabling the company to acquire and retain users organically, especially from tier-three and tier-four cities. The company boasts of 77 million monthly active users and 429 million annual active users, with investments in AI models to automate check-ins, provide real-time flight updates, and offer seamless post-booking services. A relentless focus on customer experience through tech and AI has been instrumental in Ixigo’s success.
In addition to focusing on technology-driven customer experiences, Ixigo’s growth strategy includes strategic acquisitions to deepen its market presence and expand its market share in the bus and hotel segments. The company aims to convert offline bus bookers to online users through targeted marketing campaigns and brand building efforts. Ixigo’s marketing strategy balances organic growth with strategic brand investment, with recent campaigns including celebrity endorsements and advertising during high-visibility events like the Indian Premier League.
Despite competition from large international players in the Indian market, Ixigo remains optimistic about the future of the travel industry, especially in the online travel segment. The positive investor response to recent successful listings in the travel industry demonstrates the strong potential for growth. With the growing market share of online booking channels in India and the increasing adoption of smartphones and internet usage, Ixigo is well-positioned to capitalize on the significant growth opportunity in the Indian travel market. The company’s focus on technology, AI, and customer-centric strategies will be key in differentiating itself in a competitive landscape.
