Gurugram-based online travel app Ixigo has announced that it has entered into a definitive share purchase agreement to acquire 100 per cent shareholding of Bengaluru-based online train discovery and booking platform Confirmtkt for an undisclosed amount across a mix of cash and Ixigo stock. Both Ixigo and Confirmtkt are official IRCTC B2C (business-to-customer) premium ticketing partners for online train reservations in India.
Ixigo added that both companies would continue to run independently, post this acquisition. It said in a statement that this move was to “consolidate its presence in Tier 2/3/4 markets with its combined user base of nearly 200 million Indians.”
The co-founders of Ixigo, Aloke Bajpai and Rajnish Kumar said, ‘ By leveraging our combined user base, resources, and tech expertise, we will be able to enhance the experience of millions of train travellers in India every day. The combined entity will have a scale of 35 million monthly active users, and our endeavour in the coming year will be to drive faster growth and deeper penetration in the Next Billion User’s segment.”
“This one is for the underdogs, the believers, the passionate who do not get swayed by valuations, fundraises and cash burns and are burning the midnight oil to build products and services of value to the common man in India!” Bajpai tweeted.
The deal struck between the two companies means that Bajpai and Kumar, the founders of Ixigo, would join the board of Confirmtkt and existing investors, including Venture Catalysts, would bid adieu.
Confirmtkt, founded in 2014 by Kumar Kotha and Sripad Vaidya, predicts the affirmation possibilities of a waitlisted ticket for travellers, monitors standing of trains and coach positions in real-time, and makes train schedule appointments. The company also allowed direct booking of train, bus, and air tickets. Confirmtkt recorded revenue of Rs 21.4 crore in the financial year 2020-21, along with an operating profit of Rs 1.54 crore.
Ixigo was founded in 2007 and started as a journey metasearch engine. Today, the AI-based e-commerce company provides train, bus, and flight bookings, personalized suggestions, airfare predictions and alerts, information about train delays, and other services. The company reported an Earning Before Interest, Taxes, Depreciation, and Amortization (EBITDA) lack of Rs 5.4 crore on web revenues of Rs 153 crores.
The $8-billion rich travel industry is one of the many sectors hit hard by the pandemic, with people confined to their homes owing to the lockdowns and restrictions. Ixigo said in a statement that the resumption of train providers and the relaxation of lockdown norms had led to a fast restoration of reserved train ticketing to close to pre-Covid levels.
