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.

The Ixigo-Prosus deal gives the Amsterdam-based investment group the right to appoint one director on the board of Le Travenues Technology, provided it maintains at least 10% shareholding on a fully-diluted basis. The Articles of Association of the company will be amended to this effect.

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.