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Indian online travel app Ixigo files for an IPO in India to raise $200M+, sources say at a valuation of about $850M (The Economic Times)

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
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ixigo Delays INR 1,600 Cr IPO In The Middle Of Adverse Market Belief

Given the marketplace view, it doesn’t make good sense to opt for IPO now: ixigo cofounder as well as team chief executive officer Aloke Bajpai

Bajpai said that the on-line traveling system will count on its totally free capital, offered the volatility out there now

The Gurugram-based OTA got SEBI’s approval for the INR 1,600 Cr IPO in December 2021

Online traveling collector (OTA) ixigo has put its plans for an initial public offering (IPO) on hold owing to the present macroeconomic setting.

Aloke Bajpai, the cofounder and team CEO of ixigo, informed The Hindu BusinessLine that the company has actually placed its INR 1,600 Cr IPO on the back burner in the meantime as the moment isn’t appropriate for it.

“Offered the state of the markets which haven’t eased out over the past 6 months, as well as neither are they stable at the moment with the SVB and also other monetary situations, the time isn’t right at the moment. For this reason, it really did not make good sense for us to go for an IPO now,” Bajpai claimed.

The Gurugram-based OTA got the Securities and Exchange Board of India’s (SEBI’s) authorization for the IPO in December 2021. The IPO files ran out recently, as well as ixigo would need to submit fresh papers if it plans to go for an IPO once more.

The cofounder added that ixigo chose to go for the IPO, not because of a need for cash money however due to the fact that it was seeking to expand quicker. “Given the unpredictable markets right now, we will count on our totally free cash flow,” said Bajpai.

According to the draft red herring records (DRHP), ixigo was wanting to use INR 640 Cr for funding organic as well as inorganic growth efforts, while around 25% of the web earnings were to be used for general corporate functions.

Founded by Bajpai and also Rajnish Kumar, the OTA has actually raised near to $88 Mn in financing from the similarity Sequoia India, GIC, InfoEdge, Altitude Resources and also Fosun RZ, among others. ixigo last raised a $53 Mn round (mix of primary and additional) in July 2021.

ixigo additionally got the train ticketing system ConfirmTkt in FY21 and the bus ticketing platform AbhiBus in FY22.

In a current conversation with Inc42 on roach start-ups, Bajpai talked about ixigo’s thriftiness playbook, stating that its zero-dollar advertising and marketing strategy has repaid immensely when it concerns earnings.

For context, ixigo saw a 2.8 X jump in its operating profits to INR 379.6 Cr from INR 135.5 Cr in FY21. However, it posted a consolidated net loss of INR 21 Cr in the financial year.

With the current statement, ixigo has joined the checklist of Indian startups that have postponed or completely shelved their IPO strategies in the middle of the common macroeconomic headwinds and also market volatility. boAt, OYO, PharmEasy, MobiKwik as well as Droom are amongst the various other startups which have actually suspended their IPO strategies.