Ixigo, the Indian travel and hotel booking platform, has made headlines by raising $200M in its initial public offering (IPO) at an $850M valuation. Despite the challenging economic conditions brought on by the COVID-19 pandemic, they achieved this feat. The Economic Times, one of India’s leading financial newspapers, first reported the news. In this article, we will explore the significance of this development for India’s tech industry and the country’s overall economic resilience.
Ixigo’s Growth Trajectory and Business Model
Ixigo was founded in 2007 by Aloke Bajpai and Rajnish Kumar. The platform provides various travel-related services, including flight and hotel bookings, train reservations, and bus ticket bookings. It also offers a range of travel-related content, including travel guides and blogs.
Over the years, Ixigo has increased and established itself as a leading player in India’s online travel market. The platform has over 250 employees and offices in Gurugram and Bengaluru. According to its website, Ixigo has over 250 million monthly active users and has facilitated more than 500 million transactions since its inception.
One of the critical reasons for Ixigo’s success is its business model. Unlike other travel booking platforms, Ixigo does not charge commission fees to airlines or hotels. Instead, it earns revenue through advertising and charges a fee for premium services such as travel insurance and seat selection.
Ixigo’s IPO and Valuation
Ixigo’s IPO was oversubscribed 18 times, indicating strong investor interest. The company priced the IPO at Rs 1,175 per share and raised Rs 1,620 crore ($200M).
The $850M valuation is significant, especially given the challenging economic conditions brought on by the COVID-19 pandemic. The pandemic has hit India’s travel and tourism industry hard, with international and domestic travel approaching a near standstill for several months. Despite this, Ixigo’s ability to raise $200M at a high valuation suggests that investors are confident in the company’s long-term prospects and India’s overall economic resilience.
Significance for India’s Tech Industry
Ixigo’s IPO is also significant for India’s tech industry. The country has rapidly emerged as a major player in the global tech industry, with companies like Infosys, Wipro, and TCS leading the way. However, the tech industry has yet to be immune to the effects of the pandemic, with several startups struggling to raise funding in the current environment.
Ixigo’s successful IPO could serve as a beacon of hope for other startups in the industry. It demonstrates that, despite the challenges posed by the pandemic, there is still investor interest in innovative and forward-thinking companies. It also underscores the importance of having a robust business model and a clear path to profitability, which are critical factors in attracting investor interest.
In conclusion, Ixigo’s IPO has significantly impacted India’s tech industry and the country’s economic resilience amid the COVID-19 pandemic. With its robust business model and ability to adapt to changing market conditions, Ixigo has demonstrated that there is still investor interest in innovative and forward-thinking companies. This success story will undoubtedly inspire other entrepreneurs and startups to follow in Ixigo’s footsteps and create impactful companies that drive India’s economic growth. The achievement of Ixigo and its founders is commendable, and we can only hope that it continues to thrive and inspire the next generation of entrepreneurs.