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Ixigo, the Indian travel app, has raised $200 million in its Initial Public Offering (IPO), with a strong focus on disrupting the travel industry. The company aims to use the funds to expand its product offering, invest in technology, and grow its user base. The IPO, which was oversubscribed, is a sign of investor confidence in the Indian travel industry, despite the challenges posed by the COVID-19 pandemic. In this article, we will take a closer look at Ixigo and its IPO, and explore the implications for the Indian travel industry.
Overview of Ixigo
Ixigo is a popular travel app that allows users to compare and book flights, hotels, and other travel-related services. The app was launched in 2007 and has since grown to become one of the leading travel apps in India. Ixigo’s success can be attributed to its focus on providing a seamless user experience and its ability to aggregate travel-related services from various providers.
The company has also been quick to adapt to the changing needs of the travel industry. For example, during the COVID-19 pandemic, Ixigo launched a feature that allows users to book COVID-19 tests, making it easier for travelers to meet the testing requirements of various countries.
Ixigo’s IPO was oversubscribed, with the company raising $200 million in its public offering. The shares were priced at INR 1,315 ($18) each, and the company was valued at around $750 million. The IPO was managed by Kotak Mahindra Capital Company, Axis Capital, and Citigroup Global Markets India.
The funds raised in the IPO will be used to expand Ixigo’s product offering, invest in technology, and grow its user base. The company plans to launch new products, such as car rentals and bus bookings, and to expand its presence in international markets.
Market Outlook for Ixigo
Ixigo operates in a highly competitive market, with established players such as MakeMyTrip and Cleartrip dominating the Indian travel industry. However, Ixigo has been able to carve out a niche for itself by focusing on providing a seamless user experience and by offering competitive prices.
The Indian travel industry has been hit hard by the COVID-19 pandemic, with many travelers canceling their plans due to travel restrictions and safety concerns. However, the industry is expected to recover in the coming years, with the Indian government taking steps to boost domestic tourism and with the vaccination drive underway.
In addition, the Indian travel industry is ripe for disruption, with many players still relying on traditional models that are ripe for modernization. Ixigo’s focus on technology and its ability to provide a seamless user experience make it well-positioned to disrupt the industry.
Challenges for Ixigo
Despite the positive outlook for Ixigo, there are several challenges that the company will need to overcome. One of the main challenges is the highly competitive nature of the Indian travel industry. Established players such as MakeMyTrip and Cleartrip have strong brand recognition and loyal customer bases, making it difficult for new players to enter the market.
In addition, the COVID-19 pandemic has disrupted the travel industry and has forced many players to rethink their business models. Ixigo will need to adapt to the changing needs of travelers and ensure that it is able to offer services that meet the changing demands of the market.
Finally, Ixigo will need to focus on building brand recognition and loyalty among its customers. The company has been successful in providing a seamless user experience, but it will need to go the extra mile to build brand recognition and ensure that its customers remain loyal.