New Delhi | 10-Oct-2025, 11:00 IST — Dutch tech investment firm Prosus has signed a deal to purchase about 10.1% equity in Le Travenues Technology Ltd, the parent company of Ixigo, through a $146 million (₹1,295 crore) share-subscription agreement. The pact was approved today at Ixigo’s board meeting, marking one of the largest recent transactions in India’s online travel sector.
Deal structure
The transaction will be executed via a preferential allotment of fresh shares, allowing Prosus to inject new capital directly into Ixigo rather than buying existing shareholder stakes. Post-issue, Prosus will hold a little over 10% in the company, giving it a meaningful minority position and visibility into Ixigo’s long-term strategy.
According to the company’s disclosure, the subscription will be completed in tranches subject to regulatory approvals. The fresh infusion strengthens Ixigo’s balance sheet, ensuring capital to fund growth at a time when competition in online travel bookings is intensifying.
Why Prosus is betting on Ixigo
- India focus: Prosus has already invested heavily across Indian consumer internet sectors including food delivery, edtech, fintech, and classifieds. Travel tech represents a natural extension, given India’s fast-growing travel market.
- Ixigo’s positioning: Unlike some rivals that focus largely on flights and hotels, Ixigo has carved a niche in train and bus bookings. It also targets Tier II/III cities where mobile-first travellers are driving growth.
- Technology edge: Ixigo’s use of AI tools — such as PNR prediction and fare alerts — has helped it build strong customer stickiness, something Prosus highlighted as attractive.
- Growth runway: Industry analysts estimate India’s online travel market could cross $50 billion by 2030, offering Ixigo plenty of headroom for expansion.
Strategic impact
The deal signals fresh confidence in India’s OTA (online travel agency) space, especially after the pandemic reset. With Prosus’ backing, Ixigo is expected to accelerate investment in:
- Product upgrades including AI-driven travel planning, booking add-ons, and integration across transport modes.
- Marketing and user acquisition to expand its footprint beyond metro hubs.
- Potential partnerships or bolt-on acquisitions to strengthen offerings in hospitality and ground transport.
Prosus’ minority stake also raises the possibility of future participation in governance — such as a board observer role — although specifics have not yet been disclosed.
Challenges to watch
- Competitive heat: MakeMyTrip, Yatra, and Cleartrip continue to dominate large portions of the market, with deep pockets for discounts and promotions.
- Margins under pressure: Customer acquisition costs in travel remain high; sustaining profitability alongside aggressive growth will be tricky.
- Macroeconomic factors: Inflation, fuel prices, and regulatory oversight of ticket pricing can impact demand and margins.
- Execution risk: Ixigo must align its capital deployment efficiently, balancing expansion with financial discipline.
Outlook
Prosus’ entry comes at a critical juncture for Ixigo, which listed on the stock exchanges in 2024 and has since been under pressure to deliver sustainable growth. The capital infusion is expected to boost investor sentiment and may pave the way for further consolidation in India’s travel tech ecosystem.
For Prosus, the deal cements its status as one of the most active foreign investors in India’s consumer internet sector. For Ixigo, it offers not just financial muscle but also strategic validation at a time when the OTA market is ripe for disruption and innovation.
