Prosus picks up 10% stake in Ixigo parent for ₹1,295 crore

Travel tech platform Ixigo’s has sold a 10% stake in the company to Dutch investor Prosus for ₹1,295 crore, which it plans to use primarily for investing in artificial intelligence, expanding its hotel business, and acquisitions.

The company had earlier disclosed plans to sell stake of up to 16%.

Ixigo’s parent company, Le Travenues Technology, will issue 46.2 million equity shares at ₹280 apiece, to MIH Investments One BV, a venture capital fund managed by Prosus Ventures.

Shares of Le Travenues settled about 2% higher at ₹318.75 apiece on the Bombay Stock Exchange on Friday.

Following the allotment, Prosus will have the right to appoint one director to the company’s board, subject to its holding remaining at or above 10%.

Ixigo’s management said while the fresh issue of shares as part of the Prosus investment will dilute near-term returns, it views the capital as 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 deal extends its exposure to India’s consumer internet sector, where it has backed Flipkart, Swiggy, Meesho, and Urban Company. In the travel space, Prosus had earlier invested in Goibibo, which was acquired by MakeMyTrip.

Ixigo’s four key areas

Ixigo said it is looking to step up investments in artificial intelligence (AI) and strengthen its position in the online hotels segment. The company, which went public in 2024, has highlighted AI as a key differentiator, pointing to opportunities in conversational and personalized travel booking systems.

According to Ixigo’s exchange filing, the company will split the ₹1,295 crore funds raised from Prosus evenly across four areas.

About ₹323.9 crore has been earmarked for organic growth, including new AI platforms, technology upgrades, expansion of its hotels business, and advertising.

Another 25% will be set aside for acquisitions, joint ventures, or strategic investments, with the option to redirect unspent funds back to organic initiatives.

A further ₹323.9 crore will go towards working capital to support the company’s expanding operations in flights, trains, buses, and hotels. The remaining 25% will cover general corporate purposes such as rentals, staff costs, contingencies, and administrative expenses.