Indian online travel portal Ixigo which was launched in 2007 as a flight meta-search website has now expanded with the acquisition of bus and train ticketing platforms including AbhiBus and ConfirmTkt, respectively in 2021. The company aims to clock a 40% increase in revenue from operations in FY24.
The company’s net revenue of operation rose 180% to Rs 379.5 crore in FY22 from Rs 135.5 crore in FY21. The company posted a net loss of Rs 21 crore in FY22 from a net profit of Rs 7.5 crore in FY21. In a conversation with BrandWagon Online, Aloke Bajpai, group CEO and co-founder, ixigo shared his insights on the company growth path besides strategy and competition. (Edited excerpts)
How much profit did you make in FY23 and what are your expectations from FY24?
We aim to grow revenue by 40% this year. The gross revenue from operations in FY22 increased 184% to Rs 451.5 crore in FY22 from Rs 158.8 crore in FY21. We already crossed Rs 500 crore in total operating revenue in FY2023. This year that is FY24, we aim to clock a growth of 55% to Rs 700 crore. In terms of profit, last year we clocked a margin of seven percent in EBITDA (earnings before interest, taxes, and amortisation) margin and this year we want to get it closer to 10%.
What percentage of the profit is spent on marketing?
We have the lowest marketing spend in the category among all the travel players, because most of our user base is organic. So, if I look at it as a percentage of our gross ticketing value, last year the gross ticketing value stood at Rs 7,500 crore. Our marketing spend was just one and a half percent as compared to other players.
What medium of advertising is preferred? Is it traditional media or digital media?
We have not spent a dime on offline marketing for a long time, because most of our traffic was coming organically. 90% of our users come to us without any marketing spend. We spend money on online marketing on Google, YouTube besides Facebook ads. As part of an experiment we undertook last, we had done some activities on TV and in print.
In 2021, you acquired AbhiBus and ConfirmTkt. What are your plans for these platforms? How has the acquisition helped you in revenue generation?
We acquired train ticketing platform ConfirmTkt in February 2021, and bus ticketing platform AbhiBus in August 2021. The founders of both these companies are still with us and we are working together towards the vision to attract next billion users in India who travel largely by train and bus and prefer budget-friendly accommodation. These were frugal companies which were profitable and run by founders who were committed. The companies have reached the point where there was product market fit, growth, and profitability.
Post acquisition, both companies have grown, ConfirmTkt has grown almost 4X. So, I think we have seen a good addition to our top line and bottom line from these two companies. Now, we are at more than 67 million monthly active users across three brands.