Ixigo, a prominent online travel agent (OTA) and the largest third-party platform for train travel bookings, exhibited robust growth in FY23, achieving a remarkable 32% increase in revenue compared to the previous fiscal year. The company not only witnessed substantial growth but also returned to profitability after experiencing losses in FY22.
In FY23, Ixigo’s revenue from operations surged to Rs 501 crore from Rs 380 crore in FY22, marking a significant uptick. The primary contributors to the firm’s total operating revenue, constituting 93%, were convenience fees and commissions generated from the reservation of rail, airline, and bus services. The remaining income was derived from advertising and technical support services.
Breaking down the revenue, train ticket bookings emerged as the major revenue generator, accounting for 61%, followed by flight and bus bookings contributing 21% and 1%, respectively. Ixigo’s acquisition of ConfirmTkt in February 2021 played a pivotal role in consolidating its position as the largest third-party train booking platform.
The company effectively managed its costs, with employee benefits constituting the most significant portion, representing 26% of the total expenditure. While this cost increased by 32.6% to Rs 126 crore, other operating overheads, such as advertising-promotional expenses, information technology expenses, partner support, distribution, customer refund, and payment gateway charges, collectively steered Ixigo’s total expenditure to Rs 484 crore in FY23, reflecting a 20.4% increase from FY22.
Notably, the strategic focus on controlled expenditure and noteworthy growth propelled Ixigo into profitability, registering a profit of Rs 23 crore in FY23, in stark contrast to the Rs 21 crore loss in FY22. With an improved return on capital employed (ROCE) of 6% and enhanced EBITDA margins of 7% in FY23, Ixigo demonstrated a resilient performance in the competitive travel industry.
Although Ixigo filed a draft red herring prospectus (DRHP) for an initial public offering (IPO) in August 2021, the IPO plans were deferred due to macroeconomic considerations. The company has recently announced plans to launch its independent hotel booking platform, a strategic move to enhance its offerings beyond the current partnership with Booking.com.
