Financial investors Elevation Capital, Sequoia Capital and Fosun International will receive at least 27% returns on travel app Ixigo’s initial public offering (IPO), revealed VCCircle analysis data. The ₹1,600 crore IPO through the recently filed draft papers will double the ten years long venture capital investment and growth equity firm Elevation Capital (previously SAIF Partners) by about 12 times.
Elevation Capital (formerly known as SAIF Partners) is the largest and oldest investor in the entity with 23.97% hold in stake and had invested a major chunk of ₹64 crore back in 2011. It is now looking forward to selling shares at ₹550 crore in the IPO, enabling a partial exit from Ixigo. The IPO will therefore value its stake at around ₹700-760 crore, with a 27-28% annualized return, as per the VCCircle analysis.
However, in the case of Sequoia, the IPO will double the investment firm’s five-year bet by around 7.5 times by ₹500 crore. India’s trusted capital investor, Sequoia, had invested about ₹67 crore in 2016, additionally with the Chinese conglomerate Fosun’s as of 2017, they invested a whopping ₹33.5 crore by 3.5 times to over ₹115 crore.
Pertaining to the VCCircle estimates, the company could be following a post-money equity valuation of around ₹4,000 crore in the IPO. Apart from the IPO, this company has significantly developed and improved in metrics too with an annual rate of 135% between 2018-19 and 2020-21.
“We are the largest Indian OTA (online travel agency) in the online train bookings segment and our train-centric mobile applications, ixigo trains and ConfirmTkt were collectively the leading B2C (business to consumer) distribution platforms for IRCTC (Indian Railway Catering and Tourism Corporation) with 42% market share in terms of rail bookings among OTAs and B2C distributors of IRCTC in fiscal 2021,” the firm said in the draft papers.
Ixigo latest competition is MakeMyTrip, Yatra, Cleartrip and Easy Trip Planners in the domestic OTA market. Peers in the online rail booking segment are the renowned Paytm, Amazon, Railyatri, MakeMyTrip and Goibibo. AbhiBus, Ixigo’s branch competes with redBus and Paytm.
