Firm overview
Integrated in 2006 and headquartered in Gurugram, Le Travenues Know-how Ltd (ixigo) is a know-how firm centered on enabling Indian vacationers to plan, ebook and handle their journeys throughout rail, air, buses and accommodations. The corporate’s On-line Journey Company (OTA) platform permits travellers to ebook prepare, flight and bus tickets & accommodations. The corporate additionally gives journey utility instruments and providers developed utilizing in-house proprietary algorithms and crowd-sourced data, together with prepare PNR standing and affirmation predictions, prepare seat availability alerts, prepare, bus and flight standing updates and delay predictions, alternate route or mode planning, automated internet check-in, pricing and availability alerts, deal discovery, vacation spot content material, customized suggestions, immediate fare alerts for flights, AI-based journey itinerary planner and automatic buyer help providers. Working by way of its merchandise ixigo flights, ixigo trains, ConfirmTkt and AbhiBus, the corporate is the second largest OTA in India by way of consolidated income from operations as of FY23.
Objects of the supply
- Half-funding working capital necessities of the corporate.
- Investments in cloud infrastructure and know-how.
- Funding inorganic progress by way of unidentified acquisitions and different strategic initiatives and common company functions.
Funding Rationale
- Established place – The corporate is the second largest OTA in India by way of consolidated income from operations and main OTA for the “subsequent billion customers” (refers to an current in addition to anticipated market of “new to Web” customers that features all non-Tier I market demand). As of September 2023, the corporate has collectively seen the very best utilization and engagement amongst all key OTA gamers and standalone transactional prepare cell apps in India by way of Month-to-month Energetic Customers and classes. As of 31 March 2023, the corporate is the most important Indian prepare ticket distributor within the OTA rail market and had the most important market share of round 51%, by way of rail bookings, amongst OTAs. The corporate’s bus-focused app, AbhiBus, was the second largest bus-ticketing OTA in India.
- Constant progress – As of September 2023, the corporate had the very best app utilization amongst OTAs with 83 million Month-to-month Energetic Customers cumulatively throughout its apps and additionally it is the quickest rising OTA by way of app downloads with 4.9 million month-to-month app downloads. Throughout FY23, the corporate had 429.38 million Annual Energetic Customers and 49.07 million transactions booked by way of its OTA platforms. LTTL’s working historical past initially as a journey meta search engine, and later as a utility platform and an OTA has helped its OTA platforms generate appreciable cost-efficient natural person site visitors, which helps the corporate to draw new customers, and retain and convert customers to transacting customers.
- Monetary monitor document – The corporate reported a income of Rs.501 crore in FY23 towards Rs.380 crore in FY22, a progress of 32%. The income has grown at a CAGR of 92% between FY21-23. The EBITDA of the corporate in FY23 is at Rs.44 crore, a 615% YoY progress in comparison with the Rs.6.2 crore of FY22. The CAGR between FY2021-23 of EBITDA is 132%.The PAT of the corporate in FY23 is at Rs.23 crore. The online revenue elevated by 211% in comparison with a lack of Rs.21 crore in FY22. The CAGR between FY2021-23 of EBITDA is 76%.
Key dangers
- OFS danger – Along with a contemporary concern, the IPO will see the sale by of as much as 19,437,465 shares by SAIF Companions India IV Restricted, 13,024,000 shares by Peak XV Companions Investments V, 11,950,000 shares every by Aloke Bajpai and Rajnish Kumar. Remaining as much as 1,03,16,209 shares are bought by 4 different Promoting Shareholders.
- Settlement with IRCTC – Prepare ticketing operations depend upon the settlement with IRCTC and any termination of settlement by IRCTC might have a fabric hostile impact on the corporate’s monetary situations, money flows and enterprise prospects.
- Technical failure – Any failure to take care of passable efficiency of know-how infrastructure, together with OTA platforms, significantly these resulting in disruptions in providers, might adversely have an effect on the corporate’s enterprise and repute.
Outlook
The corporate is a number one OTA with vital penetration within the underserved “subsequent billion person” market phase. In accordance with RHP, Straightforward Journey Planners Restricted and Yatra On-line Restricted are the listed opponents for Le Travenues Know-how Restricted. The friends are buying and selling at a median P/E of 121.4x with the very best P/E of 187.83x and the bottom being 54.96x. On the greater worth band, the itemizing market cap of Le Travenues Know-how shall be round ~Rs.3,603.04 crore and the corporate is demanding a P/E a number of of 153.98x primarily based on put up concern diluted FY23 EPS of Rs.0.60. Nonetheless, the corporate considerably elevated the web revenue throughout 9M December FY23, additional aiding the corporate to demand a P/E a number of of 54.93x which makes the difficulty fairly priced. Primarily based on the above views, we offer a ‘Subscribe’ score for this IPO for a medium to long-term Holding.
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