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Le Travenues Technology Limited

June 5, 2024
The Money Talks

Le Travenues Technology Limited

Le Travenues Technology Limited, also known as Ixigo, is an Indian online travel agency (OTA) that offers services for booking train, flight, and bus tickets, as well as hotel reservations. They aim to empower Indian travelers to plan, book, and manage their trips through their various digital platforms.

Here’s what we know about Le Travenues Technology Limited (Ixigo):

  • Founded: 2006
  • Headquarters: Gurugram, Haryana, India
  • Services: Online travel agency (OTA) for booking trains, flights, buses, and hotels
  • Platforms: Ixigo Trains, Ixigo Flights, Ixigo Bus, and ConfirmTKT app
  • Features: PNR status updates, train seat availability, delay predictions, travel planning
  • IPO: Launched on June 10, 2024

Market Position:

  • Highest app usage among OTAs in India with 83 million Monthly Active Users (MAU) as of September 2023.
  • Largest Indian train ticket distributor in the OTA rail market with a 51% market share as of March 31, 2023.

Le Travenues Technology Limited, the parent company of ixigo, is an attractive investment opportunity for several reasons:

Strong Market Position:

  • Leading OTA in India: ixigo is a prominent online travel agency (OTA) in India, ranking second in terms of consolidated revenue from operations in fiscal year 2023.
  • Dominant in Train Bookings: ixigo holds a significant market share (around 51%) in the OTA rail segment, making it the preferred choice for train bookings in India.
  • Growing Bus-Ticketing Platform: Its AbhiBus platform is the second-largest bus-ticketing OTA in India, indicating a strong position in this growing market.

Growth Potential:

  • Expanding Travel Industry: The Indian travel industry is experiencing substantial growth, driven by increasing disposable incomes and a rising inclination towards travel. ixigo is well-positioned to capitalize on this growth.
  • Technology-Driven Approach: ixigo utilizes artificial intelligence (AI) and machine learning to enhance travel planning and booking experiences. This focus on technology provides a competitive edge.
  • Diverse Offerings: The company offers a wide range of travel services, including rail, air, bus, and hotel bookings, catering to various traveler needs.

Financial Performance:

  • Revenue Growth: ixigo has demonstrated robust revenue growth, with a compound annual growth rate (CAGR) of 92.29% between fiscal years 2021 and 2023.
  • Improving Profitability: The company has turned around its financial performance, reporting a net profit of ₹23.4 Crore for FY23, reversing a loss from the previous year.
  • Strong IPO: The upcoming IPO is expected to provide funds for further growth initiatives, including working capital needs, technology investments, and potential acquisitions.

Risks to Consider:

  • Competition: The online travel industry is highly competitive, with established players like MakeMyTrip and new entrants vying for market share.
  • Regulatory Changes: Changes in government regulations related to the travel industry could impact ixigo’s operations.
  • Market Volatility: The stock market can be volatile, and the performance of ixigo’s stock could be affected by broader market trends.

Overall:

Investing in Le Travenues Technology Limited presents a promising opportunity due to its strong market position, growth potential in the expanding Indian travel industry, technology-driven approach, and improving financial performance. However, potential investors should carefully consider the associated risks before making any investment decisions.