In a strategic move aimed at diversifying its offerings, online travel aggregator ixigo has acquired a 51% stake in Zoop, a train food delivery service and an authorized Indian Railway Catering and Tourism Corporation (IRCTC) e-catering partner. The acquisition signals ixigo's entry into the growing train food delivery market, further strengthening its position in the Indian travel ecosystem.

Founded in 2016 by Puneet Sharma and Manoj Kumar, Zoop operates across 192 railway stations in India and has partnered with approximately 400 restaurants to provide passengers with a wide range of food options during their journeys. With this acquisition, ixigo aims to leverage Zoop’s established presence and capabilities to offer a seamless and enhanced travel experience for its users.

ixigo Launches "Food on Train" Feature

Following the acquisition, ixigo has introduced a new “Food on Train” feature, integrated into its popular train apps—ixigo trains and ConfirmTkt. This new service allows train passengers to pre-order meals from a diverse selection of high-quality food options and have them delivered directly to their seats. The feature provides users with the ability to browse through meal options, track their orders in real-time, and cancel their orders without any charges before a specified cut-off time. This convenience is expected to enhance the overall travel experience for millions of ixigo users.

According to Aloke Bajpai, Group CEO of ixigo, and Rajnish Kumar, Group Co-CEO, the acquisition opens up new avenues for ixigo to expand its collaboration with IRCTC. They noted that the integration of Zoop's food delivery logistics with ixigo’s large user base and its real-time train status and PNR tracking capabilities will enable the company to efficiently deliver meals directly to passengers' berths. This partnership will also drive growth in the e-catering space while complementing ixigo’s core ticketing business.

Financial Details of the Acquisition

The total consideration for ixigo’s 51% stake in Zoop amounts to Rs 12.54 crore, including a non-compete fee. The deal is subject to the completion of certain pre-conditions and will be executed through a combination of secondary and primary share purchases. This strategic investment underscores ixigo’s commitment to diversifying its product offerings while enhancing the overall travel experience for its customers.

ixigo's Financial Performance and Growth

The acquisition comes on the heels of ixigo’s strong financial performance in recent quarters. In its Q2 FY25 results, ixigo reported a revenue growth of 26% year-on-year, reaching Rs 206.5 crore, up from Rs 163.9 crore in Q2 FY24. The company also posted an adjusted EBITDA of Rs 21 crore, marking a significant year-on-year increase of 326%. Additionally, ixigo achieved robust cash flow growth from operations, generating Rs 70.4 crore in the first half of FY25, representing a 262% year-on-year growth.

Aloke Bajpai and Rajnish Kumar highlighted that the company has managed to maintain rapid growth despite market challenges, including capacity constraints and seasonal fluctuations. They attributed this growth to continuous improvements in ixigo’s product offerings and conversion rates, as well as the company’s ability to cater to non-urban users and tap into synergies across its portfolio of brands.

Zoop’s Potential in the Train Food Delivery Market

With the rise of digital platforms and increased internet penetration, the train food delivery business in India has gained significant traction in recent years. Zoop, being an authorized e-catering partner of IRCTC, has successfully capitalized on this trend by offering passengers the convenience of ordering food from their smartphones. The service has grown steadily, expanding to hundreds of stations across the country.

The acquisition by ixigo is expected to further accelerate Zoop’s growth trajectory. By integrating Zoop's services with ixigo’s comprehensive travel platform, both companies can tap into new revenue streams while enhancing their value proposition to customers.

ixigo’s acquisition of a majority stake in Zoop marks a significant milestone in the company’s ongoing efforts to expand its service offerings and become a one-stop solution for travelers in India. The introduction of the “Food on Train” feature not only enhances ixigo’s platform but also strengthens its collaboration with IRCTC, creating synergies that are expected to drive further growth in the e-catering sector.

With ixigo’s proven track record of delivering strong financial performance and its ability to adapt to market demands, this acquisition positions the company well for continued success in the competitive Indian travel industry. Zoop’s established presence in the train food delivery market, coupled with ixigo’s large user base and technological expertise, is likely to create a powerful combination that benefits both companies and their customers.