In order to support its expansion, listed travel tech giant Ixigo is obtaining INR 1,296 Cr (about $145.9 Mn) from Prosus through a preferential issue on a private placement basis.

Ixigo stated in an exchange filing that its board has authorized the distribution of 4.62 Cr equity shares to.

MIH Investments One B.V. is a fully owned subsidiary of Prosus.  After the crowdfunding, the subsidiary will own 10.1% of Ixigo.

Ixigo intends to use the recently raised funds for working capital needs, general business objectives, and organic and inorganic growth prospects.  For each of the aforementioned heads, the corporation stated that it would use a quarter of the entire amount raised.

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The following uses of the funds will be made by the business:

• Opportunities for Organic Growth: It intends to allocate 25% of the funds to growing its supply and product lines for its hotel OTA company. Additionally, it will allocate cash to support the research and development of new AI platforms, goods, and services.
• Opportunities for Inorganic Growth: The funds allocated under this subheading will be used for acquisitions that have not yet been identified. March 2028 is the deadline for using these monies.  The unused funds will be put toward the company’s organic growth projects if acquisitions do not materialize within the allotted time.
• Working Capital Requirement: As its OTA business expands to include flights, trains, buses, and hotels, the company intends to spend up to INR 323.89 Cr for working capital requirements.
• General Corporate Purposes: Managing ongoing expenses, contingencies, rent, administrative costs, staff wages, capital expenditures, and other needs as determined by the company’s board will be among the general corporate purposes for which the remaining assets will be utilized.

This occurs a few days after Ixigo notified the stock markets that it had received a notification from a possible investor seeking to purchase a 16% share in the business.

On November 1, Ixigo called an extraordinary general meeting to get shareholder approval for the fundraising initiative.

As long as MIH Investments owns more than 10% of Ixigo after the investment, it will be able to designate a director to serve on the board.

Notably, Prosus was an early investor in Flipkart and Goibibo and has already invested over $8.6 billion in India.  The investment firm currently runs PayU in India, while Swiggy, Meesho, Urban Company, and Rapido are among its investment holdings.

Over the past year, ixigo has had robust growth across business verticals; the money will help it accelerate its expansion.  In the first quarter of FY26, the company’s consolidated net profit increased by 27% to INR 18.9 Cr from INR 14.9 Cr in the same quarter last year.  In the meantime, its top line increased 73% from INR 181.9 Cr in Q1 FY25 to INR 314.5 Cr in the reviewed quarter.