Ixigo’s Incredible Rollercoaster Ride to IPO
Today, we will be walking you through the story of ixigo and what goes into making of a great company. In 2006, Aloke Bajpai, an IIT Kanpur alumnus, and his colleague Rajnish Kumar decided to return to India and start Ixigo, investing a modest 6 lakh rupees. Despite initial skepticism from investors, the duo’s relentless efforts resulted in a $10,000 monthly revenue within 6 months of launch.
However, the 2008 financial crisis hit Ixigo hard, resulting in withdrawal of an almost-closed $5M funding round which led to a significant workforce reduction. The team took a voluntary pay cut to weather the storm, focusing on customer-centric product development.
By 2010, Ixigo launched its mobile app, rapidly expanding its user base. It strategically partnered with major travel businesses, offering exclusive discounts and deals. Over the years, it diversified its offerings, from intra-city cabs to inter-city travel guides, leveraging its understanding of travelers’ pain points.
The company’s real turning point came when it focused on the railways sector, launching a railway app that attracted 60 million travelers by 2016, capturing 70% of the market share. Ixigo’s revenue model evolved, transforming the platform into a full-fledged online travel agency (OTA).
Despite the challenges posed by the pandemic, Ixigo demonstrated exceptional resilience, providing customer-centric solutions such as proactive refunds and introducing the ‘assured’ feature for flight bookings. It acquired ConfirmTkt and AbhiBus, consolidating its position in the OTA space.
In 2021, Ixigo separated from its investor-partner MakeMyTrip, filing for a Rs. 1,600 crore IPO. The company’s focus on user retention, frugal operations, and innovative offerings resulted in impressive financials, with an estimated revenue of over Rs. 500 crores in FY23.
With plans to double its yearly bookings and a growing user base of 50 million, Ixigo’s journey to becoming one of India’s leading OTAs is a testament to perseverance and consumer-centric business practices.
Ixigo’s journey from being a startup grappling with financial challenges to becoming a market leader and a potential IPO candidate embodies the spirit of perseverance and innovation in the face of adversity. Source – ajuniorvc
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