ixigo To Raise INR 1,296 Cr From Prosus To Power Growth

Listed travel tech major ixigo is raising INR 1,296 Cr (around $145.9 Mn) from Prosus through a preferential issue on a private placement basis to fuel its growth.

In an exchange filing, ixigo said that its board approved an allotment of 4.62 Cr equity shares to 

Prosus’ wholly owned subsidiary MIH Investments One B.V. The subsidiary will hold 10.1% stake in ixigo post the fundraise.

ixigo plans to deploy the freshly raised capital for organic growth opportunities, inorganic growth opportunities, working capital requirement, and general corporate purposes. The company said it would utilise 25% of the total capital raised for each of the aforementioned heads.

The company will use the capital for the following purposes: 

• Organic Growth Opportunities: It plans to use 25% of the capital for expanding its product and supply expansion for its hotel OTA business. It will also deploy funds for developing new AI platforms, products, and services, including their research and development expenditure.
• Inorganic Growth Opportunities: The capital under this subhead will be deployed for unidentified acquisitions. The timeline to utilise these funds is March 2028. In case acquisitions do not arise within the specified timeline, the unutilised amount will be redirected to the company’s organic growth initiatives.
• Working Capital Requirement: The company plans to utilise up to INR 323.89 Cr for working capital requirements, which are increasing alongside the expansion of its OTA business across flights, trains, buses, and hotels. 
• General Corporate Purposes : The remaining funds will be used for general corporate purposes such as managing ongoing expenses, contingencies, rent, administrative costs, employee salaries, capital expenditures, and other needs as decided by the board of the company.

This comes a couple of days after ixigo informed the exchanges that it received an intimation from a potential investor to acquire up to 16% stake in the company.

ixigo has convened an extraordinary general meeting on November 1 to seek the approval of its shareholders for the fundraise. 

Following the investment, MIH Investments will have the right to have a nominee director on ixigo’s board as long as its stake in the company remains above 10%.

Notably, Prosus has invested over $8.6 Bn in India to date and was an early investor in Flipkart and Goibibo. Currently, the investment firm operates PayU in India, and its investment portfolio includes Swiggy, Meesho, Urban Company and Rapido. 

The funding will help ixigo, which has been seeing strong growth across business verticals over the past year, accelerate its expansion. The company’s consolidated net profit jumped 27% to INR 18.9 Cr in the first quarter of FY26 from INR 14.9 Cr in the year-ago quarter. Meanwhile its top line grew 73% to INR 314.5 Cr during the quarter under review from INR 181.9 Cr in Q1 FY25.