Travel tech platform Ixigo has sold a 10% stake to Dutch investor Prosus for ₹1,295 crore, with plans to utilize the funds primarily for investing in artificial intelligence, expanding its hotel business, and pursuing acquisitions.
The company had earlier indicated intentions to sell up to a 16% stake. Ixigo’s parent company, Le Travenues Technology, will issue 46.2 million equity shares at ₹280 per share, including a premium of ₹279, to MIH Investments One BV, a venture capital fund managed by Prosus Ventures.
Following the allotment, Prosus will gain the right to appoint one director to Ixigo’s board, provided its holding remains at or above 10%.
Ixigo’s management noted that while the fresh issue of shares as part of the Prosus investment may dilute near-term returns, the capital is critical for long-term growth. “The plan is to invest in AI at its inflection point, accelerate growth, increase customer lifetime value and deepen operating leverage,” Ixigo stated in its stock exchange filing.
For Prosus, the investment expands its presence in India’s consumer internet sector, where it has backed companies like Flipkart, Swiggy, Meesho, and Urban Company. In the travel segment, Prosus previously invested in Goibibo, and MakeMyTrip later acquired the company.
Ixigo said it aims to increase investments in artificial intelligence (AI) and strengthen its position in the online hotel segment. The company, which went public in 2024, highlighted AI as a key differentiator, emphasizing opportunities in conversational and personalized travel booking systems.
According to the exchange filing, Ixigo will allocate the ₹1,295 crore raised from Prosus across four key areas. The company will use approximately ₹323.9 crore for organic growth, including investments in new AI platforms, technology upgrades, hotel business expansion, and advertising. It will earmark another 25% of the funds for acquisitions, joint ventures, or strategic investments, with the flexibility to redirect any unspent amount back to organic initiatives. Ixigo will also allocate a further ₹323.9 crore to working capital to support its operations across flights, trains, buses, and hotels. The remaining 25% will cover general corporate purposes, such as rentals, staff costs, contingencies, and administrative expenses.
