Ixigo From a Humble Beginning to India's Travel Tech Giant

In the world of travel tech, few stories are as inspiring as that of Ixigo. What started as a modest venture in a Gurgaon apartment with an initial investment of just INR 6 lakh has now evolved into a thriving powerhouse, processing over INR 10,000 crore in Gross Transaction Value (GTV) and facilitating 50 million bookings annually. Ixigo's journey is a rollercoaster ride that perfectly encapsulates the essence of resilience, vision, and the relentless pursuit of innovation. Here's how they turned near-failures into triumphs and became a leader in India's travel tech space.

The Dream Begins: IIT Kanpur to the Travel Tech World

It all began in 2006 when Aloke Bajpai and Rajnish Kumar, both alumni of IIT Kanpur, took a leap of faith. Tired of their comfortable jobs in Europe, they returned to India with a bold vision: to build a travel platform that catered specifically to the needs of Indian travelers. At the time, the online travel space was already crowded, with heavyweights like MakeMyTrip, Yatra, and Cleartrip dominating the market.

Despite the competition, the duo pushed forward, raising a modest INR 6 lakh to start their venture in a small apartment. Their dream was to create a meta-search engine that simplified the often chaotic and fragmented travel planning process for Indian users. However, their timing was off. Investors were skeptical, and some predicted that their efforts would fizzle out before even gaining traction.

The Early Struggles and a Crisis That Sparked Innovation

Ixigo officially launched in 2007, focusing on one often overlooked area: the pre-booking phase of travel. It was a smart move, as it resonated with users who were seeking a better way to plan their trips. Within six months, Ixigo had garnered 100,000 monthly users and was earning $10,000 in monthly revenue—all without spending a single rupee on marketing.

Success came knocking when the company secured a $1.5 million seed funding round, and interestingly, one of the investors was none other than MakeMyTrip, the very competitor they would later face head-on. However, just as things were starting to look up, the 2008 financial crisis hit, and Ixigo's rollercoaster ride took a sharp dive. A promised $5 million funding round evaporated, and the 15-member team was faced with the harsh reality of potential layoffs.

But instead of giving in to despair, the team showed incredible grit. They took voluntary pay cuts and continued to push forward, proving their commitment to their shared vision. It was during this time that they pivoted and recognized the importance of mobile technology. In 2010, Ixigo launched its mobile app, a bold move that would go on to redefine their future.

The Mobile Revolution: A Game-Changer for Ixigo

The mobile app was a game-changer for Ixigo. With mobile travel becoming increasingly popular, the company expanded its offerings beyond flight bookings, adding trains, buses, and hotels to their platform. This diversification allowed Ixigo to become a one-stop solution for all travel-related needs. By 2011, the company had achieved its first profitable month and reached over 1 million monthly users—a remarkable feat in an era when online travel was still gaining traction in India.

The Complicated MakeMyTrip Partnership

MakeMyTrip’s investment in Ixigo, while instrumental in keeping the company afloat, also created a complicated dynamic. On one hand, Ixigo was a meta-search engine that helped users discover information; on the other hand, MakeMyTrip was an online travel agency (OTA) focused on transactions. Despite their synergy in the early years, their relationship began to strain as the two companies found themselves competing for market share.

In 2011, MakeMyTrip led a $18.5 million Series A round, acquiring a significant stake in Ixigo. While the funding ensured survival, it also meant that Ixigo had to share a large portion of the business with a direct competitor—a situation that wasn’t easy to navigate.

Innovative Moves and Diversification

Despite challenges, Ixigo continued to innovate. The company’s deep understanding of the Indian railway system was key to its success. In 2013, Ixigo launched a dedicated rail app, offering essential information for India’s millions of train travelers. By 2015, the platform had expanded to include meta-search across all major travel categories, serving over 2.5 million monthly travelers.

However, monetization remained a challenge. Despite its growing user base, the company struggled to convert traffic into revenue. To overcome this, Ixigo began diversifying its business model, acquiring smaller companies and venturing into the intra-city cab segment. In 2015, Micromax, the Indian mobile manufacturer, came to the rescue with an undisclosed investment that provided much-needed capital.

The Strategic Shift: From Meta-Search to OTA

By 2017, Ixigo realized that the limitations of the meta-search model were holding them back. To stay competitive, they needed to evolve into a full-fledged OTA—a shift that would place them in direct competition with their major investor, MakeMyTrip. The landscape shifted even further when MakeMyTrip acquired Goibibo, intensifying the competitive pressure on Ixigo.

But rather than faltering, Ixigo doubled down on its strengths. They refocused on serving the “Next Billion” users—people in tier 2 and 3 cities who were just getting access to the internet. This untapped market, largely reliant on railways, became Ixigo’s core customer segment.

Partnering with IRCTC: A Bold Move to Build Trust

One of the most significant moves in Ixigo’s growth came in 2017 when the company partnered with IRCTC, India’s national railway catering and tourism corporation, to sell train tickets directly through its platform. This partnership was a strategic masterstroke. While rail tickets offered low margins, the move helped Ixigo build trust with their core user base. Over time, this trust opened doors for higher-margin products, such as flights and hotels.

Pandemic Pivot and Resilience

Just when things seemed to be going smoothly, the COVID-19 pandemic struck, bringing the travel industry to a halt. Many competitors resorted to layoffs and cost-cutting, but Ixigo chose a different path. Focusing on customer pain points, especially the complicated process of refunds, the company launched a COVID Centre within its app to address traveler concerns. This customer-centric approach paid off. Despite the pandemic’s challenges, Ixigo emerged stronger, achieving growth and profitability in FY21.

The IPO and What Lies Ahead

By 2021, Ixigo was ready to take the next big step in its journey: an Initial Public Offering (IPO). Though the IPO was postponed due to market conditions, the company’s future remained bright. With 5 million daily active users and 55.5 million monthly active users by 2022, Ixigo had firmly established itself as a dominant player in the Indian travel tech space. Their data-driven decision-making and multi-app strategy ensured that they catered to a diverse user base, delivering impressive margins.

The Final Word

Ixigo’s rise from a small startup to a travel tech giant is a powerful testament to the importance of perseverance, innovation, and understanding your market. From navigating near-failures to capitalizing on opportunities, the company’s journey shows that success isn’t just about having a great idea—it’s about having the resilience to weather the storm and adapt to an ever-changing landscape. Ixigo’s story is far from over, and with their customer-first approach and focus on emerging trends, it’s clear that this rollercoaster ride will continue to soar to new heights.