VIDEC report reveals ixigo Group registered a 5X growth post the pandemic and second highest revenue in the OTA category in FY22
The ixigo group (along with its subsidiaries ConfirmTkt and Abhibus) was India's second-largest online travel agency (OTA) by revenue in FY22 and FY23.
The company further solidified its position in the business-to-customer (B2C) rail market by reaching nearly 50 per cent market share by gross book value (GBV) of the B2C rail market among OTAs in FY23. This was revealed in a study conducted by VIDEC on the travel market.
The 'India Ground Transportation Market Sizing and OTA Benchmarking Study, FY20-FY26' has established that the group was the second-largest OTA by revenue in India in both FY22 and FY23. The company is the second largest OTA in the bus segment, with an 11 per cent market share of GBV in FY23, as per the report.
Indian Railways remains the country's most prominent mode of transportation, reaching nearly Rs 617 billion ($7.7 billion) market size. The online B2C channel for rail bookings is projected to grow at 23 per cent CAGR from Rs 95 billion as of FY23 to reach Rs 176 billion ($2.2 billion) in FY26, becoming 26 per cent of the overall rail bookings market, the report noticed.
The report also observed that the bus travel segment is poised for rapid growth. With infrastructure investments in national and state highways, growing internet access in tier 2 and 3 cities, and modernisation of buses and service quality, buses are becoming the favoured choice for both business and leisure travellers.
Rajnish Kumar and Aloke Bajpai, co-founders, ixigo said, "We were one of the first companies to solve the utility pain areas of Tier 2/ Tier 3 users in India by focusing on rail-centric use cases and with the acquisition of ConfirmTkt and Abhibus, we have doubled down on our strengths in ground transportation, and we are now leveraging our large audience also to cross-sell and up-sell other services, including flights & hotels, to this fast-growing market.”