News Update

Ixigo Is Set To Be A Goldmine For Elevation

• ByAyushi Ray     |    August 16, 2021

Ixigo is set to be a goldmine for Elevation and also for Sequoia, Fosun. They will soon reap bumper returns as the travel platform proceeds with its ₹1,600 crore initial share sale. According to an analysis done by data intelligence platform VCCircle based on the estimated equity valuation of the company from the IPO, they will acquire at least 27% of the annualized returns on their investment in Le Travenues Technology Ltd, the operator of ixigo. Ixigo filed draft papers for the share sale on Friday. The biggest beneficiary of this is turning out to be venture capital and growth equity firm Elevation, previously SAIF Partners, with a 12-fold jump in its decade-long investment. Elevation, ixigo’s largest and oldest investor with a 23.97% stake, had invested more than ₹64 crore in 2011.

 The IPO of Ixigo would value the investor’s stake at ₹700-760 crore, giving it an annualized return of 27-28%, the analysis showed. To be sure, Elevation is looking to sell shares worth up to ₹550 crore in the IPO, making a partial exit. For Sequoia, the IPO will multiply its five-year-old investment by about 7.5 times, valuing it at about ₹500 crore. Venture capital investor Sequoia, which had invested about ₹67 crore back in 2016, holds about 16% stake and will get more than 50% annualized return as per the IPO pricing. The IPO will also bump up Chinese conglomerate Fosun’s ₹33.5 crore investment in 2017 by 3.5 times to more than ₹115 crore, an annualized return of about 33%. 

 

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