Train food delivery company Zoop set for 51% ownership acquisition by Ixigo
The online travel agency Ixigo is prepared to buy the bulk of Zoop Web Services Private Limited. In an October 24, 2024, meeting, the Ixigo board of directors approved the acquisition. The agreement calls for Ixigo to pay Rs 12.54 crore, including a non-compete fee, for a 51 percent share in Zoop.
The definitive agreements signed by both companies specify the conditions that must be met in order for this transaction to proceed.
Purchases of both primary and secondary shares will be used to complete the acquisition. E-catering and other solutions for the railway ecosystem are among Zoop’s well-known offerings. By incorporating Zoop’s products into its platform, Ixigo hopes to give its users a more complete travel experience.
Ixigo’s acquisition makes sense because the train vertical accounted for 53% of its revenue in Q2 FY25.
PNR status checks, meal reservations, and other railway-related services are provided by Zoop. There are 192 railway stations where it operates in 18 states. There are currently about 400 restaurants that the company partners with.
Ixigo not only has the majority stake in Zoop, but it also has the option to buy the remaining 49% of the company in the future.
Ixigo has now made three significant acquisitions. It purchased a 100% share in the train reservation app Confirmtkt in February 2021, and in August of the same year, it seized control of the bus aggregator platform AbhiBus.
In Q2 FY25, Ixigo’s operating revenue increased by 26% to Rs 206.47 crore over the same period in FY24. However, the company’s profit after tax (PAT) fell from Rs 26.70 crore in Q2 FY24 to Rs 13.08 crore in Q2 FY25, a substantial 51% decrease.
