The Economic Times:Indian online travel app Ixigo files for an IPO in India to raise $200M+, sources say at a valuation of about $850MMumbai: Travel booking app ixigo is looking to raise Rs 750 crore through a primary fundraise and Rs 850 crore via an offer for sale (OFS) from existing investors as part
ixigo Delays INR 1,600 Cr IPO In The Middle Of Adverse Market Belief
Offered the market view, it does not make good sense to opt for IPO today: ixigo cofounder and team CEO Aloke Bajpai
Bajpai stated that the on the internet travel system will rely on its totally free cash flow, offered the volatility in the market today
The Gurugram-based OTA obtained SEBI’s approval for the INR 1,600 Cr IPO in December 2021
On the internet travel collector (OTA) ixigo has actually placed its plans for an initial public offering (IPO) on hold due to the existing macroeconomic atmosphere.
Aloke Bajpai, the cofounder and also team CEO of ixigo, informed The Hindu BusinessLine that the firm has actually put its INR 1,600 Cr IPO on the back burner for now as the moment isn’t appropriate for it.
“Offered the state of the markets which haven’t relieved over the past six months, and also neither are they secure currently with the SVB and various other financial dilemmas, the time isn’t right now. Thus, it really did not make good sense for us to opt for an IPO now,” Bajpai said.
The Gurugram-based OTA received the Stocks as well as Exchange Board of India’s (SEBI’s) authorization for the IPO in December 2021. The IPO records ran out recently, and ixigo would have to file fresh records if it prepares to go with an IPO once again.
The cofounder included that ixigo made a decision to opt for the IPO, not because of a need for cash money yet since it was looking to grow much faster. “Provided the unpredictable markets right now, we will depend on our totally free cash flow,” said Bajpai.
As per the draft red herring records (DRHP), ixigo was seeking to utilise INR 640 Cr for funding organic and not natural development campaigns, while around 25% of the net proceeds were to be used for general corporate purposes.
Started by Bajpai as well as Rajnish Kumar, the OTA has elevated near $88 Mn in financing from the likes of Sequoia India, GIC, InfoEdge, Elevation Resources and also Fosun RZ, to name a few. ixigo last elevated a $53 Mn round (mix of primary as well as second) in July 2021.
ixigo likewise got the train ticketing system ConfirmTkt in FY21 and also the bus ticketing platform AbhiBus in FY22.
In a recent conversation with Inc42 on cockroach startups, Bajpai talked about ixigo’s frugality playbook, stating that its zero-dollar marketing technique has settled greatly when it pertains to profitability.
For context, ixigo saw a 2.8 X enter its operating income to INR 379.6 Cr from INR 135.5 Cr in FY21. Nevertheless, it uploaded a consolidated bottom line of INR 21 Cr in the financial year.
With the latest statement, ixigo has actually signed up with the list of Indian startups that have delayed or permanently shelved their IPO plans in the middle of the widespread macroeconomic headwinds and market volatility. watercraft, OYO, PharmEasy, MobiKwik as well as Droom are among the other startups which have suspended their IPO plans.