Le Travenues Technology Ltd (ixigo) IPO: Comprehensive Overview, Financials, and SWOT Analysis
Unveiling Le Travenues Technology Ltd’s Journey: Key Insights into the Upcoming IPO, Financial Performance, and Strategic SWOT Analysis.
Company Overview
Le Travenues Technology Ltd, established on June 3, 2006, is a pioneering technology company specializing in travel planning and booking solutions across various modes of transportation and accommodations in India. Initially known as “Le Travenues Technology Private Limited,” it transitioned to a public limited company on August 3, 2021. The company operates under the brand “ixigo” and aims to facilitate smarter travel decisions through AI, machine learning, and data science innovations on OTA platforms.
IPO Details
- IPO Issue Period: June 10 — June 12, 2024
- Issue Price Band: ₹88 — ₹93 per equity share
- Market Lot: 161 shares
- Total IPO Size: ₹740.1 Crore
- Min Order Quantity: 161 shares
- IPO Issue Type: Book Building Issue
- Face Value: ₹1 per equity share
- Listing At: BSE, NSE
IPO Timeline
- Opening Date: June 10, 2024
- Closing Date: June 12, 2024
- Finalisation of Basis of Allotment: June 13, 2024 (Tentative)
- Initiation of Refunds: June 14, 2024 (Tentative)
- Transfer of Shares to Demat Account: June 14, 2024 (Tentative)
- Listing Date: June 18, 2024 (Tentative)
IPO Reservation
Financial Performance
Consolidated Figures (in ₹ Crore)
Standalone Figures (in ₹ Crore)
Company Objectives for IPO
The net proceeds from the IPO will be allocated for:
- Working Capital Requirements
- Investment in Inorganic Infrastructure and Technology
- General Corporate Purposes
Company Background and Growth
Le Travenues Technology Ltd has evolved significantly since its inception. The company launched its meta-search website for flights in 2007 and began selling train tickets for IRCTC alongside other travel offerings. Key milestones include:
- 2008: Launch of the meta-search website for hotels.
- 2011: Introduction of the ixigo flights app.
- 2012: Launch of the trip planner.
- 2013: Introduction of the ixigo-trains mobile application for Android.
- 2014: Addition of train utility features on the ixigo-trains mobile application.
- 2016: Launch of bus ticketing on their platform.
- 2017: Introduction of ixigo money and bus bookings.
- 2020: Launch of ixigo assured and an updated version of TARA.
In 2021, the company acquired the business of AbhiBus, enhancing its offerings in bus, train, and hotel bookings.
SWOT Analysis
Strengths
- Leading OTA with Significant Market Penetration: Le Travenues Technology Ltd has a strong presence in the underserved ‘next billion user’ market segment, which refers to new internet users from non-Tier I markets. This segment constituted 60%-65% of the overall travel market in FY23.
- Technology-Driven Operations: The company leverages advanced technologies such as AI and machine learning. Key offerings include:
- ixigo PLAN: An AI-based trip planner.
- ixigo Assured Flex: Allows purchase of fully flexible airline or train tickets.
- TARA: An AI-driven personal travel assistant.
3. Highly Rated Consumer Travel Brands: The ixigo group apps are highly rated on platforms like the Google Play Store, with a rating of 4.6 as of November 2023.
4. Comprehensive Product and Service Mix: The company’s presence across trains, flights, buses, and hotels enables it to monetize all aspects of its OTA platforms, providing significant operating leverage.
Weaknesses
- Limited Experience as an OTA: Initially commenced operations as a meta-search website, which may limit its operational expertise in the OTA sector.
- High Operating Expenditures: The company faces significant operating expenditures, which impact its profitability.
- Dependency on IRCTC: There is a substantial dependency on IRCTC for train ticket sales.
Opportunities
- Expanding Travel Industry in India: The growing travel market in India offers significant expansion opportunities.
- Potential for International Market Penetration: There is considerable scope for extending services beyond the Indian market.
- Growth in Digital Adoption: Increasing internet penetration and digital adoption bolster online travel bookings, benefiting the company’s business model.
Threats
- Highly Competitive Industry: Faces stiff competition from established players like MakeMyTrip, EaseMyTrip, Yatra.com, Cleartrip, PayTM, Amazon, RailYatri, Goibibo, and Redbus.
- Vulnerability to Industry Trends: Adverse trends in the travel industry can significantly impact business operations.
- Sensitive to External Factors: The travel industry is susceptible to safety concerns, terrorist attacks, regional conflicts, health concerns, natural calamities, regulatory restrictions, and other catastrophic events.
- Financial Challenges: The company incurred a net loss of ₹21 crore in FY22 due to increased expenses related to the employee stock option scheme and the COVID-19 pandemic. Additionally, it experienced negative cash flows from operating activities amounting to ₹15 crore and ₹34 crore in FY21 and FY22, respectively, due to the pandemic and consequent lockdowns.
Contact Information
- Address: 2nd Floor Veritas Building, Sector 53, Golf Course Road, 122002
- Phone: +91–124–668 2111
- Email: investors@ixigo.com
- Website: www.ixigo.com
Registrar of IPO:
- Registrar: Link Intime India Pvt Ltd
- Address: C-101, 247 Park, L B S Marg
- Phone: +91–22–49186000
- Fax: +91–22–49186060
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Disclaimer
This article is for informational purposes only and does not constitute financial advice. Potential investors should consult with their financial advisors before making any investment decisions. All information has been sourced from reliable publications and the company’s IPO prospectus. However, we do not guarantee the accuracy or completeness of this information.
