Ixigo to sell 10.1% stake to Prosus in $146-million deal, shares fall

The Ixigo-Prosus deal gives the Amsterdam-based investment group the right to appoint one director on the board of listed company Le Travenues Technology.

Ixigo has decided to sell 10.1% stake to Prosus NV in a deal valued at $146 million, a little over a year after the online travel platform listed on the stock exchanges. Its share price fell after announcement of the deal.

A file photo of Ixigo co-founders Aloke Bajpai and Rajnish Kumar at the listing of their company on 18 June 2024. (X/@alokebajpai)

Le Travenues Technology Ltd., the listed operator of the company co-founded by Aloke Bajpai and Rajnish Kumar, has approved issuing 4.62 crore shares of face value ₹1 each at ₹280 apiece to Prosus unit MIH Investments One BV on a private placement basis, according to an exchange filing on Friday.

That pegs the value of the Ixigo-Prosus stake sale deal at ₹1,295.56 crore for 10.10% stake in the online travel platform.

Ixigo will allocate the proceeds in four equal parts for:

• Organic growth initiatives — artificial intelligence, technology, product and marketing — by 31 December 2028.
• Inorganic growth by way acquisitions and strategic investments by 31 March 2028.
• Working capital requirements, driven by the expansion of the over-the-air business, by 31 March 2027.
• General corporate purposes — administrative, contingencies and capital expenditure — by 31 March 2028.

Ixigo, according to the exchange filing, views the fundraising as timely to double down on its AI-centric strategy and strengthen its branding in the face of competition from the likes of MakeMyTrip and EasyTrip.

While the near-term returns metrics may seem diluted, in the longer term the Ixigo management expects compounding of shareholder value via growth, operating leverage and a deeper moat.

The company will now convene an extraordinary general meeting on 1 November 2025 for shareholder approval for the Ixigo-Prosus deal.