Ixigo’s imminent acquisition of Confirmtkt may be a win-win for all after the end of the Covid era.
Gurugram-based online travel aggregator ixigo is all set to buy out Bengaluru-based online train discovery and booking platform Confirmtkt for an undisclosed amount across a mix of cash and ixigo stock.
The founders of ixigo will join the Confirmtkt board and existing investors of Confirmtkt, including Venture Catalysts, will be exiting the company fully as a part of the deal.
In an official statement, ixigo confirmed that the two companies will continue to run independently after the acquisition.
Both ixigo and Confirmtkt are official IRCTC B2C (business-to-customer) ticketing partners for online train reservations in India.
This deal will help the group to consolidate its presence in tier 2/3/4 markets.
“By leveraging our combined user base, resources, and tech expertise we will be able to enhance the experience of millions of train travellers in India every day,” said Aloke Bajpai and Rajnish Kumar, Co-Founders of ixigo, in a joint statement.
“The combined entity will have a scale of 35 million monthly active users.”
Confirmtkt was established in 2015 by Dinesh Kumar Kotha and Sripad Vaidya. The company recorded a revenue of Rs 21.4 crores and an operating profit of Rs 1.54 crores in FY20.
Train travel in India is an US$8 billion market, with over 25 million passengers taking a train trip every day during pre-Covid times, ixigo said.
With its timely acquisition, the company is likely to be well-placed to capitalise on its stronger-than-ever position to more than make up for lost ground when the situation normalises in the post-Covid era.
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