How Ixigo Makes Money: Inside Their Winning Business Model
🔍Insights
Le Travenues Technology Ltd., which operates under the trade name "Ixigo," is a prominent online travel agency (OTA) that was founded in 2006. Aloke Bajpai and Rajnish Kumar started the company so that people in India could easily book hotels, trains, buses, and flights. The Bangalore-based company has a massive consumer base all over India.
Ixigo Business Model
How Ixigo Makes Money
Ixigo Key Features
Ixigo IPO
Way Forward
Ixigo Business Model
Ixigo has proven its operational prowess in a very competitive market. In FY23, marketing and promotional costs were for just 18.6% of revenue, well below the 35.8% average for the industry. With 25 million users active every month, Ixigo has made great strides in acquiring new customers. Also, with an expense-to-revenue ratio of 0.97, the corporation has kept its costs modest. The strategic expertise and market agility demonstrated by Ixigo in the online travel business can be seen in these figures.
The company runs on a strong commission-based business model. It runs a meta-search business that enables travelers to get all the necessary services required under one roof.
The creative combination of technology and solutions focused on the consumer is key to Ixigo's success. By utilizing AI, ML, and data analytics, Ixigo has created customized vacation packages that are highly popular among tech-savvy millennials. AbhiBus and Confirmtkt are just two examples of the strategic partnerships and acquisitions that have helped Ixigo grow its business, enhance its products, and attract more customers.
There aren't many profitable Indian tech businesses in the tourism industry, but Ixigo is among them. Impressive financial gains were achieved by the company while facing challenges like the COVID-19 pandemic and a very competitive OTA market.
Ixigo Business Model Canvas
Ixigo, a leading online travel platform in India, has built a resilient and scalable business model focused on affordability, innovation, and deep market penetration.
Below is a concise Business Model Canvas outlining how Ixigo operates and creates value:
1. Key Partners
- Indian Railways
- Airlines, bus operators, hotel chains
- ConfirmTkt and AbhiBus (acquisitions)
- FreshBus (investment in e-bus services)
- Ad brands (especially travel & leisure sector)
2. Key Activities
- Travel search aggregation (meta-search)
- Ticket bookings: trains, buses, flights, cabs, hotels
- Tech innovation using AI/ML/data analytics
- App and platform development
- Strategic partnerships & acquisitions
3. Value Propositions
- All-in-one travel booking platform
- Low-cost, user-friendly options for tier II & III cities
- High personalization with AI-powered recommendations
- Innovative features (live train status, AR coach finder)
- Reliable, efficient, cost-effective travel planning
4. Customer Relationships
- Self-service via apps and website
- Trust built through consistent low-cost services
- Personalized offers through data insights
- Engaging app experience with utility features
5. Customer Segments
- Tech-savvy millennials
- Budget travelers in tier II & III cities
- Daily rail commuters and long-distance travelers
- Leisure and business travelers
6. Key Resources
- AI, ML, and data analytics systems
- Ixigo app, Ixigo Trains app
- User base (25 million MAUs)
- Brand recognition and app ranking
- Strategic acquisitions like ConfirmTkt and AbhiBus
7. Channels
- Mobile apps (Ixigo, Ixigo Trains)
- Website
- Partner platforms (FreshBus, ConfirmTkt)
- Digital advertising
8. Cost Structure
- Marketing & promotions (18.6% of revenue in FY23)
- Platform maintenance & tech development
- Acquisition and partnership costs
- Operational & employee expenses
9. Revenue Streams
- Commissions from bookings (train, flight, bus, hotel, cab)
- Additional service fees (hotel bookings)
- Advertisements on app & website
- E-ticketing commission via FreshBus
Rishabh Rathi
How Ixigo Makes Money
Ixigo generates revenue from various sources, including:
Commission from Train, Bus, Flight ticketing, and Cab booking: Indians rely on trains for their daily commutes, with a higher proportion opting for long-distance rail travel. This is particularly true for a developing nation like India, where flying is still out of reach for the majority of the population. The train booking process on Ixigo is quite straightforward to use. However, Ixigo is only allowed to charge commissions between INR 20 and INR 35 per booking, and the Indian Railways do not permit surge pricing. Similarly, the company charges various commissions on bus, flight, and cab booking too, charges vary depending on the distance traveled.
Hotel Reservation Commission: For hotel reservations, Ixigo collects some extra fees in addition to the booking prices for its services offered on the site. These fees are called "Additional Fees" and are meant to cover the cost of providing convenient services to clients.
Revenue through Advertisement: As the website and app of Ixigo have a massive viewership and downloads, the company is utilizing this development to generate revenue. Now several brands have been putting their promotional advertisement on Ixigo's website. Brands associated to travel and leisure industry are constantly opting for Ixigo's website for their promotional activities.
E-bus ticketing via FreshBus: In preparation for the introduction of electric bus services between cities in India, Ixigo put INR 26 crore (about $3.1 million) into the Bengaluru-based startup FreshBus. Now company charges a hefty commission through its e-ticketing service on every booking of FreshBus.
Ixigo Financials FY24
| Particulars | FY24 | FY23 |
|---|---|---|
| Total Revenue | INR 665.1 crore | INR 517.6 crore |
| Total Expenses | INR 627.8 crore | INR 484.3 crore |
| Profit/Loss | INR 73.1 crore | INR 23.4 crore |
Over the past five fiscal years, Ixigo has demonstrated significant growth in revenue and profitability, reflecting its expanding presence in the travel industry.
In FY24, Ixigo reported a total revenue of INR 665.1 crore, marking a 28% increase from INR 517.6 crore in FY23. Expenses also rose to INR 627.8 crore in FY24, up from INR 484.3 crore in FY23. Despite the increase in costs, the company's net profit surged to INR 73.1 crore, more than tripling from INR 23.4 crore in FY23.
Ixigo Key Features
With Ixigo, customers can search and book flights, hotels, trains, taxis, and destinations from over 120 different suppliers and OTAs. Initially, the company's focus was on serving customers in tier-I cities with its primary product, an app that allowed users to book flights and hotels. Ixigo gradually recognized the necessity of concentrating on tier II and III cities. A separate rail app was developed as a result, aimed at low-cost travelers hailing from those cities. The company's commitment to innovation and its goal of resolving even the most minor consumer pain points constitute its greatest competitive advantage. Ixigo has introduced new features such as live running status, Siri shortcuts, and an augmented reality tool that lets users find their coach positions at over 7,000 railway stations in India.
Ixigo IPO
In the wake of its initial public offering (IPO), Ixigo is well-positioned to shake up the industry. With an estimated valuation of over INR 6,000 crore, the initial public offering (IPO) represents more than simply a chance to invest; it reflects faith in Ixigo's lucrative and cutting-edge business strategy. Investors' faith in Ixigo's future growth is evident in the IPO's target valuation of around INR 120 crore, which establishes the firm as a strong contender among IT IPOs.
Just one day before the anchor book opening, the company finalized a pre-IPO secondary placement of over Rs 176.2 crore. Madison India, Elevation Capital, Micromax Informatics, and Peak XV Partners sold 18.9 million shares at the upper end of the IPO price band of Rs 93 apiece during this secondary sale. Ashoka India Equity Investment Trust, Bay Capital, Tata Mutual Fund, and Steadview Capital are among the new investors who bought shares. Shares of the company debuted strongly on June 18, 2024.
Way Forward
The internet travel industry has its share of hurdles, but Ixigo is up for the challenge. New services and products from the company include Ixigo Money, a loyalty program that gives customers discounts and cash back, and Ixigo Assured, a premium travel product that gives customers priority support, free ticket modifications, and guaranteed refunds. For a more tailored and satisfying experience for its customers, the business has also put money into cutting-edge tech like data analytics, AI, and machine learning. Through these efforts, Ixigo has been able to grow its user base, market share, and income while tackling all the business operations' difficulties.
Sakshi Jadhav
FAQs
Which company made Ixigo and what does Ixigo do?
Le Travenues Technology Ltd., which operates under the trade name Ixigo, is a prominent online travel agency (OTA). With Ixigo, customers can search and book flights, hotels, trains, taxis, and destinations from over 120 different suppliers and OTAs.
When was Ixigo founded?
Aloke Bajpai and Rajnish Kumar founded the company in the year 2006.
Is Ixigo profitable?
Yes, Ixigo is profitable, with a net profit of â‚ą73.1 crore in FY24 and â‚ą23.4 crore in FY23.
What is Ixigo net worth?
As of July 2025, Ixigo has a market capitalization of around INR 6,700 crore (approximately $770 million). The company is profitable, with a net income of about INR 60 crore on trailing 12-month revenue of INR 932 crore, reflecting strong financial performance and investor confidence.
What is business of Ixigo?
Ixigo is an online travel platform that aggregates and lets users search, compare, and book flights, trains, buses, hotels, and cabs using AI‑powered meta‑search.
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