Travelling Broker Ixigo Purchases 51% Shares in Zoop, IRCTC Partner & Train Food Delivery App

Ixigo, a major player in India’s travel booking sector, is purchasing a 51% share in Zoop Web Services Private Limited, a train food delivery company.

Zoop is an IRCTC-authorized e-catering partner that provides lunch options on trains throughout India.

The acquisition, valued at Rs 12.54 crore, is made up of primary and secondary share acquisitions, as well as a non-compete fee.

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With this acquisition, ixigo hopes to strengthen its products in the train travel category, which has demonstrated significant development potential.

Ixigo’s acquisition signals its entrée into India’s rapidly rising e-catering market via the train network. With Zoop’s well-established operations in 192 stations and partnerships with 400 restaurants, ixigo hopes to improve its services for train passengers by incorporating Zoop’s food delivery capabilities onto its own platform.

Ixigo’s leadership underlined the importance of food services as an essential component of the travel experience, especially on rail excursions where meal alternatives are restricted.

The acquisition is consistent with Ixigo’s strategic ambitions, as the train segment contributes significantly to revenue.

On October 24, 2024, Ixigo’s board approved the acquisition, which is scheduled to close by the end of the year, subject to certain conditions.

The investment is funded through a combination of main and secondary share acquisitions, giving Ixigo control of Zoop’s activities as a subsidiary. The transaction includes a cash component and electronic payments totaling Rs 12.54 crore.

Furthermore, Ixigo retains the option to acquire the remaining 49% ownership in Zoop, enabling for future growth based on Zoop’s performance and market conditions.

Following Zoop’s takeover, Ixigo launched a “Food on Train” service, which allows customers to pre-order meals at various railway stops.

Passengers can select from a variety of meals delivered directly to their seats, with real-time tracking and cancelation accessible until the cutoff time.

The new function intends to improve travellers’ dining experiences by providing different food options and dependable delivery, utilizing Ixigo’s train scheduling data to assure seamless service. This connection is expected to reduce missing deliveries while increasing consumer satisfaction.