Travel booking platform Ixigo is poised to acquire a majority stake in Zoop Web Services Private Limited. The Ixigo board approved the acquisition during a meeting on October 24, 2024. The deal entails Ixigo purchasing a 51% stake in Zoop for a total of Rs 12.54 crore, which includes a non-compete fee.
This transaction is contingent upon the satisfaction of specific conditions detailed in the definitive agreements signed by both parties.
The acquisition will be carried out through a mix of secondary and primary share purchases. Zoop specializes in e-catering and various solutions for the railway ecosystem. By incorporating Zoop’s services into its platform, Ixigo aims to enhance the overall travel experience for its users. This move is strategic for Ixigo, as 53% of its revenue in Q2 FY25 was generated from its train services.
Zoop provides meal bookings, PNR status checks, and other railway-related services, operating in 18 states and serving 192 railway stations, with partnerships with nearly 400 active restaurants.
In addition to the majority stake acquisition, Ixigo has an option to buy the remaining 49% stake in Zoop in the future.
This marks Ixigo’s third significant acquisition; it previously acquired the train booking app Confirmtkt in February 2021 and the bus aggregator platform AbhiBus in August of the same year.
Ixigo reported a 26% increase in revenue from operations, reaching Rs 206.47 crore in Q2 FY25 compared to the same period in FY24. However, its profit after tax (PAT) saw a notable decline of 51%, falling from Rs 26.70 crore in Q2 FY24 to Rs 13.08 crore in Q2 FY25.
