As a strategic foray into increasing its presence in the train travel space, Ixigo, India’s leading travel booking website, is buying a 51% stake in Zoop Web Services Private Limited IRCTC-authorized food delivery service for trains. Valued at ₹12.54 crore, this includes the purchase of both primary and secondary shares as well as a non-compete clause to cement Ixigo’s place in India’s railway network’s e-catering space.
Expanding Ixigo’s Reach in the Train Travel Segment
This acquisition forms part of the strategy for growth for Ixigo. With Zoop, the travel tech firm has been able to acquire an extensive e-catering network, which extends up to 192 railway stations and across 400 restaurants in India. Food options are generally limited in train journeys, and Ixigo would be able to serve as a comprehensive travel experience. This acquisition strategy justifies the vision that Ixigo has towards enriching the train travel experience and increasing its revenue from railway booking.
According to Ixigo’s leadership team, food services are an essential part of travel. It will bring quality and convenience to Zoop’s established network and increase value for Ixigo’s millions of users, who book train tickets frequently on its platform. This would further cement Ixigo in the railway booking segment, which currently forms a significant part of its revenue contribution.
Deal Structure and Financial Details
The deal is expected to be completed by year-end subject to final conditions, as it was approved by the board of Ixigo on October 24, 2024. The deal structure would comprise a cash payment of ₹12.54 crore in electronic transfers, which will provide the company with much control over Zoop’s operations, which would operate as a subsidiary under Ixigo. Additionally, the acquisition deal has also facilitated an option for Ixigo to buy the remaining 49% stake in Zoop, which would further offer scope to expand on market conditions and the performance of Zoop.
Making the dining experience better on the railways
The first step after its acquisition, Ixigo has introduced a “Food on Train” feature that allows users to pre-book meals for delivery at railway stations. The new feature comes with real-time tracking and flexible cancellation, ensuring that meals are delivered timely and conveniently right to passengers’ seats. Using scheduling data from Ixigo, this integration is bound to reduce missed deliveries while increasing overall customer satisfaction.
This strategic acquisition thus makes Ixigo a leader in the Indian travel tech space based on the growing demand for integrated train travel solutions with a new standard for dining experiences across India.
