Ixigo Expands Into Train Food Delivery with Majority Stake in Zoop Through this acquisition, Ixigo has introduced a new "Food on Train" feature that enables users to pre-order meals for seat delivery with real-time tracking, diverse meal options, and free cancellations before the cut-off time on its apps.
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Online travel aggregator Ixigo has announced its entry into the train food delivery market by acquiring a 51% majority stake in Zoop, a train food delivery service and an authorised IRCTC e-catering partner, for INR 12.54 crore.
The deal, comprising both primary and secondary share purchases, includes a non-compete fee and is subject to certain conditions precedent.
Founded in 2016 by Puneet Sharma and Manoj Kumar, Zoop currently operates at 192 railway stations across India and partners with approximately 400 restaurants to provide travelers with a variety of meal options.
Through this acquisition, Ixigo has introduced a new "Food on Train" feature on its apps, Ixigo Trains and ConfirmTkt, which allows users to pre-order meals for delivery directly to their seats. This feature offers travelers the convenience of real-time order tracking, a range of quality meal choices, and free cancellations before the cut-off time.
The acquisition enables Ixigo to further expand its services within the IRCTC ecosystem and leverage Zoop's established partnerships. Commenting on the acquisition, Aloke Bajpai, Group CEO, and Rajnish Kumar, Group Co-CEO, stated, "E-catering on trains has become a rapidly growing segment, with a total addressable market (TAM) potential nearing USD 1 billion. This strategic partnership deepens our collaboration with IRCTC, fostering synergy for everyone involved."
Ixigo's new "Food on Train" feature leverages its large user base and integrates with real-time train data, such as PNR status and crowdsourced train status information, to deliver meals directly to passengers. "The tight integration of delivery logistics with our train user base will help us deliver meals efficiently to our users' seats," added Bajpai and Kumar.
The acquisition comes amid strong financial growth for Ixigo. In Q2 FY25, the company reported a 26% YoY increase in revenue from operations, reaching INR 206.5 crore, up from INR 163.9 crore in Q2 FY24. Its adjusted EBITDA surged by 326% YoY to INR 21 crore, alongside a cash flow growth of 262% in H1 FY25, reaching INR 70.4 crore.
"Our growth in Q2 FY25, especially in flights and buses, demonstrates our ability to scale despite capacity constraints. This quarter highlights the value of continuous product improvements and our capacity to meet demand," Bajpai and Kumar noted, pointing to Ixigo's ongoing growth and expansion potential across sectors.
