Train travel and booking have again taken pace slowly. For providing a better experience to train travelers, Ixigo has acquired a 100% stake in Confirmtkt, an online train discovery, and ticket booking app. Ixigo, an online travel portal, will take full control of the Confirmtkt app.
Details About Current Acquisition Deal
The acquisition deal was completed on the basis of cash exchange and stock. Neither Ixigo nor Confirmtkt revealed the financial details of the deal. As per the agreement, Ixigo founders will be Confirmtkt board member. All the existing investors including Venture Catalysts will exit totally. Still, Confirmtkt will operate independently. Ixigo is one of the popular organizations in the travel sector.
“Confirmtkt has built an innovative and high growth company with a great product-market fit and laser-sharp focus on train-related use-cases. By leveraging our combined user base, resources, and tech expertise we will be able to enhance the experience of millions of train travelers in India every day,” Ixigo co-founder Aloke Bajpai said.
As per Ixigo’s analysis, the train travel market is worth $8 billion in India. On average, 25 million passengers travel every day by train. Ixigo believes that relaxation in lockdown rules has brought Train services to normalcy.
Confirmtkt and Ixigo both have partnerships with the Indian railway for B2C operations. Combined together, Ixigo and Confirmtkt have the capability to reach around 200 million users. Monthly, both can scale up their services to reach 35 million Indians.
“Current acquisition will bring a faster growth and deep penetration to billion users segment”, said Bajpai.
Key Information and Revenue Details of Ixigo and ConfirmTkt
Comfirmtkt is a five-year-old company founded by Dinesh Kumar Kotha and Sripad Vaidya. In the financial year of 2020, the company recorded a net profit of Rs 1.54 crore with total revenue of Rs 21.4 crore. As per the Confirmtkt statement, the company app has been downloaded more than 20 million times.
On the other hand, Ixigo was founded in the year 2007. It recorded a revenue of Rs 153.5 crore with an EBIDTA loss of approximately Rs 5.5 crore.
In 2020, Spicejet acquired Travenues, one of the subsidiaries of Ixigo. Travenues was one of the favorite projects of Ixigo launched enthusiastically one year ago.
Travenues is a technology platform dedicated to airline commerce for a better consumer experience. Ixigo soon realized that it doesn’t want to work on this business.
Ixigo train-related app has a total of 50+ million downloads on the Play store. More than 1 million users have given an average rating of 4.4 out of 5.
Confirmtkt has a total of 10+ Million downloads on Playstore. A rating of 4.6 by more than 2.3 lakhs users shows the popularity of the services provided by Confirmtkt.