ixigo Acquires 51% Stake in Train Food Delivery Startup Zoop

SUMMARY

ixigo acquired the stake for INR 12.54 Cr ($1.4 Mn) through a combination of primary and secondary share purchases

Founded in 2016, Zoop is an IRCTC-authorised food delivery aggregator. It currently operates at 192 railways stations across India

Following the acquisition, ixigo has launched a new "Food on Train" feature on its train apps

Online travel aggregator Ixigo has acquired a 51% stake in train food delivery platform Zoop Web Services Pvt Ltd for INR 12.54 Cr ($1.4 Mn) through a combination of primary and secondary share purchases.

As per the agreement signed between the companies, ixigo has the option to purchase the remaining stake in Zoop subject to fulfilment of certain conditions, the travel aggregator said in a statement.

Founded in 2016 by Puneet Sharma and Manoj Kumar, Zoop is an IRCTC-authorised food delivery aggregator. The startup currently operates at 192 railways stations across India and has partnered with around 400 select restaurants.

ixigo said that Zoop generated a revenue of INR 7.65 Cr in FY24 and was profitable.

“The Zoop acquisition allows us to further enrich the experience for our train users. The tight integration of the delivery logistics with our large train user-base and the PNR status and crowdsourced train status data will help us deliver meals efficiently directly to the train berths of our users,” said Aloke Bajpai, chairman, managing director and group CEO of ixigo.

Following the acquisition, ixigo has launched a new “Food on Train” feature on its train apps (ixigo trains & ConfirmTkt), enabling travellers to pre-order meals for delivery to their seats at stoppage stations. The feature includes real-time order tracking and free cancellation before cut-off time.

Commenting on the acquisition, ixigo group chief financial officer Saurabh Singh said that the overall size of the food delivery opportunity to rail passengers exceeds $1 Bn based on Zoop management estimates.

“So the overall train food order market in GOV terms has a scope to expand 10-15 times from where it is now, and can help us monetise the train audience better during their trips,” Singh added.

ixigo also released its financials for the September quarter today. The company’s consolidated net profit nearly halved to INR 13.08 Cr from INR 26.70 Cr in Q2 FY24 due to tax outgo and absence of exceptional gains during the quarter under review. Revenue from operations rose 26% to INR 206.5 Cr in Q2 FY25 from INR 163.9 Cr in the corresponding quarter last year.

Founded in 2007, ixigo claims to have over 480 Mn annual active users. The company went public in June this year. Its shares ended today’s trading session 0.57% lower at INR 149.10 on the BSE.