Global technology investor Prosus is investing INR 1,295.56 crore (about $146 million) to acquire a 10.1%stake in ixigo (Le Travenues Technology Ltd). The investment will come via a preferential issue of equity shares to Prosus’s affiliate MIH Investments One B.V. The approved price per share is INR 280, which is slightly above ixigo’s 10-day volume-weighted average price.
The ixigo board has approved issuing 46,270,092 equity shares in this move. After this allotment, Prosus will hold its 10.1 per cent stake on a fully diluted basis.
What ixigo plans to do with the funds
ixigo says it will use the fresh capital across several fronts:
- Organic growth, like investing in AI, technology upgrades, and expanding its hotel business
- Acquisitions and strategic investments to grow faster in adjacent areas
- Working capital support to build out its operations in flights, buses, trains, hotels, etc.
- Corporate uses such as staff cost, admin expenses, and contingencies
ixigo’s management noted that although this fresh issue will dilute near-term returns, the capital infusion is critical for its long-term growth. The company intends to deepen its use of AI, improve customer engagement, and build operating leverage over time.
Moreover, as part of the agreement, Prosus will have the right to appoint one director to ixigo’s board, as long as its stake stays at or above 10 per cent.
Strategic significance and financials
For Prosus, this move reinforces its interest in India’s consumer internet sector. It already backs major names like Flipkart, Swiggy, Meesho, and Urban Company. In the travel space, Prosus previously invested in Goibibo (later acquired by MakeMyTrip).
Meanwhile, ixigo has been growing rapidly. In Q1 FY 26, its revenue from operations jumped from INR 182 crore to INR 314 crore. Its net profit for that quarter rose to INR 19 crore from INR 15 crore the previous year.
ixigo was listed in June 2024 at an issue price of INR 93 per share.
The collaboration between ixigo and Prosus now positions ixigo to push harder in travel technologies, AI-enabled services, and acquisitions. The inflow of funds brings both opportunity and expectations for future scaling.
Muskaan Kapoor
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