Ixigo, one of India’s fastest-growing travel tech platforms, has secured ₹1,296 crore (about $146 million) from Prosus through a preferential share issue, marking a significant milestone in the sector. This deal will give Prosus a 10.1% stake in travel tech giant, with the funds evenly allocated across organic growth, inorganic acquisitions, working capital, and general corporate purposes. The transaction follows recent market interest in Ixigo, including inquiries from potential investors about acquiring up to a 16% stake.
Latest Financials of Ixigo
They ended FY25 with its strongest-ever financial results:
- Sales surged 39% year-on-year to ₹914 crore, compared to ₹656 crore in FY24.
- Net profit for FY25 was ₹60 crore, though this reflects an 18% drop due to increased costs as the company invests in expansion.
- EBITDA stood at nearly ₹99 crore, a substantial rise from ₹53 crore in FY24.
- The company’s Q1 FY26 performance continued momentum, with revenue jumping 72.5% year-on-year to ₹314 crore and net profit hitting ₹19 crore.
- Categories like flights and bus bookings showed especially strong growth, each with above 90% YoY GTV expansion, and train GTV rose 41%, driven by a strategic push in Tier 2/3 markets.
Reduction in Chinese Stake and Shareholder Updates
Ixigo has actively reduced its exposure to Chinese-origin investment, aligning with broader industry trends in India:
- Major early investors like Elevation Capital have been trimming shares—over three big exits in the past three months—now holding just 6.45% of the company, down from 14% in March 2025.
- Recent exits, alongside the entry of global asset managers like Schroder and Prosus, have lowered Chinese-linked VC stakes and broadened institutional investor participation.
- Latest shareholding data shows FIIs remain the largest block at nearly 60%, while mutual fund and public/institutional ownership has increased to over 6% and 70.8% respectively, reflecting healthy diversification post-IPO.
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Funding and Market Position
- Ixigo went public in June 2024 at ₹93/share; the new investment brings fresh capital at ₹280/share, indicating strong market confidence.
- The preferential issue also serves as a precursor to further strategic moves, including tech investments (AI/ML), deeper forays into hotel bookings, and new acquisition targets.
- Besides Prosus and Elevation, legacy investors like Sequoia, Fosun, and GIC have seen partial exits of late, reducing non-Indian stake in the company.
In summary:
Their ₹1,296 crore raise from Prosus is a landmark deal, enabling balanced investment in growth, M&A, working capital, and tech upgrades. The transaction has diversified their shareholder base, reduced Chinese-linked ownership, and positions it for continued leadership in India’s online travel space, with strong financials and robust investor backing supporting its next phase of expansion
