Le Travenues Technology (IXIGO) , India's leading AI-based travel platform, has reported robust growth for the second quarter, outpacing market growth across its key business segments. The company's strategic focus on AI-driven travel technology and expansion into Tier-II markets is positioning it for long-term growth and improved profitability.

Financial Highlights

For Q2, ixigo reported:

• Gross Transaction Value (GTV) of ₹4,347.50 crore, up 23% year-over-year (YoY)
• Revenue from Operations of ₹282.70 crore, a 37% increase YoY
• Adjusted EBITDA of ₹28.50 crore, growing 36% YoY

The company's performance was particularly strong in its flight and bus segments:

Strategic Focus on AI and Market Expansion

ixigo is leveraging artificial intelligence to enhance its travel technology offerings and expand into Tier-II markets. This strategy aims to strengthen the company's profitability outlook through several key initiatives:

1. AI-Driven Innovation: The company has introduced AI Smart Filters for flights on desktop, allowing users to search and refine results using natural language inputs.

2. Expansion of Bus Services: ixigo's subsidiary, AbhiBus, has strengthened its nationwide network by onboarding seven new State Road Transport Corporations (SRTCs), bringing the total to 17 major state transport corporations.

3. Enhanced Train Booking Experience: The company has introduced an improved Train Alternates feature, offering users more options for their journeys.

4. Metro Ticketing Integration: In partnership with Delhi Metro Rail Corporation (DMRC) and Open Network for Digital Commerce (ONDC), ixigo has launched QR-based Delhi Metro ticketing on its ixigo Trains & ConfirmTkt apps.

5. Strategic Partnerships: ConfirmTkt, another ixigo subsidiary, has partnered exclusively with HDFC Bank to enable train ticket bookings on the HDFC SmartBuy platform.

Management Commentary

Aloke Bajpai, Group CEO of ixigo, commented: "Despite Q2 facing some capacity headwinds, ixigo continued its resilient momentum and grew faster than the overall market YoY in all lines of business, with buses and flights leading the growth and trains maintaining our OTA market leadership."

Rajnish Kumar, Group Co-CEO, added: "The fundraise provides the balance sheet required to fulfil our long-term aspiration of delivering the best AI-first customer experience for travel and fuels our expansion into new categories and markets."

Future Outlook

ixigo's focus on AI-driven solutions and expansion into Tier-II markets positions the company for continued growth. The development of margin-rich ancillary revenue streams, coupled with strategic market expansion, is expected to enhance the company's profitability in the coming quarters.

As the travel industry continues to evolve, ixigo's investment in AI technology and its focus on underserved markets could provide a significant competitive advantage, potentially leading to sustained growth and improved market position in the Indian online travel sector.

Le Travenues Technology (IXIGO) , India's leading AI-based travel platform, has reported rapid growth in its quarterly results with significant increases in Gross Transaction Value (GTV). The company's bus segment grew 51% year-over-year while the flights segment increased 29% year-over-year.

Key Financial Highlights

• Revenue from Operations: ₹282.70 crore, up 37% year-over-year (YoY)
• Gross Transaction Value (GTV): ₹4,347.50 crore, increased 23% YoY
• Adjusted EBITDA: ₹28.50 crore, grew 36% YoY
• Net Loss: ₹32.00 million, compared to a profit of ₹131.00 million in the previous year's corresponding quarter

Segment Performance

Le Travenues Technology reported robust growth across its key business segments:

Financial Analysis

Despite the impressive top-line growth, Le Travenues Technology faced challenges in profitability. The company's EBITDA turned negative with a loss of ₹38.00 million, contrasting with a gain of ₹180.00 million in the same quarter last year. This shift indicates increased operational costs and investments, potentially in growth initiatives or market expansion.

Management Commentary

Rajnish Kumar and Aloke Bajpai, Group Co-CEO and Group CEO of ixigo, respectively, stated: "Despite Q2 facing some capacity headwinds, ixigo continued its resilient momentum and grew faster than the overall market YoY in all lines of business, with buses and flights leading the growth and trains maintaining our OTA market leadership."

Saurabh Devendra Singh, Group CFO, added: "It was not an easy quarter, and yet we continued to grow profitably. This was a result of customer empathy, product innovation, agility, and in some cases, 'old-fashioned persistence.'"

Recent Developments

The company has made several strategic moves to enhance its offerings and market position:

1. Partnered with DMRC and ONDC to introduce QR-based Delhi Metro ticketing on ixigo Trains & ConfirmTkt apps.
2. AbhiBus expanded its network by onboarding 7 new State Road Transport Corporations (SRTCs), now aggregating 17 major state transport corporations.
3. Introduced AI Smart Filters for flights on desktop, enhancing user experience.
4. Enhanced the Train Alternates feature with improved options for nearby stations, alternative dates, and partial journey combinations.
5. Implemented Aadhaar-based IRCTC authentication, recording over 10,000 successful verifications daily.

Looking Ahead

While Le Travenues Technology faces short-term profitability challenges, its strong revenue growth and market outperformance in key segments suggest a focus on expansion and market share gains. The management's emphasis on customer-centric innovation and strategic partnerships indicates a long-term approach to building a robust travel technology platform.

Investors and stakeholders will likely be watching closely to see how the company balances its growth initiatives with the need to return to profitability in the coming quarters.