In a strategic move to enhance its offerings for train travelers, online travel aggregator ixigo has acquired a 51% stake in Zoop Web Services Pvt Ltd, a train food delivery platform, for INR 12.54 Crore ($1.4 million). The acquisition was made through a combination of primary and secondary share purchases, as announced by ixigo.
Under the agreement, ixigo also holds the option to acquire the remaining stake in Zoop upon the fulfilment of certain conditions. This acquisition enables ixigo to expand its services for train passengers by integrating Zoop’s food delivery capabilities with its own suite of travel applications.
Zoop, an IRCTC-authorised food delivery aggregator, was founded in 2016 by Puneet Sharma and Manoj Kumar. The platform partners with around 400 select restaurants and currently operates at 192 railway stations across India. In the financial year 2024, Zoop reported a revenue of INR 7.65 Crore and achieved profitability, which made it an attractive acquisition target for ixigo.
Speaking on the acquisition, Aloke Bajpai, chairman, managing director, and group CEO of ixigo, said, “The Zoop acquisition allows us to further enrich the experience for our train users. The tight integration of the delivery logistics with our large train user-base and the PNR status and crowdsourced train status data will help us deliver meals efficiently directly to the train berths of our users.”
Following the acquisition, ixigo has introduced a new “Food on Train” feature across its train-focused applications, ixigo trains and ConfirmTkt. The feature allows travelers to pre-order meals for delivery at their seat when the train halts at specific stations. Additionally, the feature includes real-time order tracking and free cancellation options before the designated cut-off time.
Commenting on the growth potential of the market, ixigo Group CFO Saurabh Singh stated, “The overall size of the food delivery opportunity to rail passengers exceeds $1 Bn based on Zoop management estimates. So the overall train food order market in GOV terms has a scope to expand 10-15 times from where it is now, and can help us monetise the train audience better during their trips.”
The acquisition comes alongside ixigo’s release of its financial performance for the September quarter. The company reported a consolidated net profit of INR 13.08 Crore, nearly half of the INR 26.70 Crore profit from Q2 FY24, largely due to tax expenses and the lack of exceptional gains during this period. However, revenue from operations increased by 26%, rising to INR 206.5 Crore from INR 163.9 Crore in the same quarter last year.
Founded in 2007, ixigo currently boasts over 480 million annual active users. The company went public in June this year, with its shares closing 0.57% lower at INR 149.10 on the BSE today.
