Le Travenues Technology Limited's Competitive Fortitude - An Overview of Its Strengths

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Le Travenues Technology Limited's Competitive Fortitude - An Overview of Its Strengths
  • Le Travenues Technology Limited is India’s second-largest OTA in terms of consolidated revenues from operations for 2023 fiscal
  • The company's apps had the highest number of reviews on the Google Play Store among all OTA mobile apps in India as of November 30, 2023
  • It has acquired a significant portion of its users organically

Le Travenues Technology Limited, the parent company of Ixigo, is all set to launch its initial public offering (IPO). Ixigo IPO consists of a fresh issue and an offer for sale. As an investor, you must know a company's competitive strengths to understand what sets it apart and assess its likelihood of success in the coming days. Read on to learn about the competitive strengths of Le Travenues Technology Limited, which is also the base for computing its offer price.

Leading Online Travel Agency (OTA) With Significant Penetration in the Next Billion User Market Segment

Le Travenues Technology Company is the leading OTA for the next billion-user market segment, having the highest monthly active users for mobile apps across key OTA as of September 30, 2023. As per the F&S report, it's the second-largest OTA in India in terms of consolidated revenue from operations for the fiscal 2023. That's not all.

The company is also the fastest-growing OTA in the country in terms of operations between fiscal 2020 and 2023. The number of transactions booked through its OTA platforms increased at a CAGR of 139.43% from 0.856 crores in fiscal 2021 to 4.907 crores in fiscal 2023 and to 3.647 crores and 4.2 crores in the nine months ended December 31, 2022, and December 31, 2023.

Established Consumer Travel Brands Built with User-first Approach

This is another major strength of the company. The company's brand presence and loyalty can be gauged from the rapid growth in monthly active users, which increased from 2.159 crores in March 2021 to 6.283 crores in March 2023. The company recorded a repeat transaction rate of 85.14% and 86.06% in fiscal 2023 and the nine months ending on December 31, 2023.

According to the F&S Report, as of November 30, 2023, the company's apps had the highest number of reviews on the Google Play Store among all OTA mobile apps in India.

Diversified Business Model with Significant Operating Leverage and Organic Flywheel

The company's business model comprises a comprehensive mix of product and service offerings across flights, trains, buses, and hotels. This has allowed the firm to monetise all aspects of its OTA platforms. Its gross transaction value has grown at a CAGR of 86.04% from Rs 21,53.297 crores in fiscal 2021 to Rs 56,15.249 crores in fiscal 2022.

Since its inception, the company has focused on growing its operations organically by relying on online marketing strategies. It has acquired a significant portion of its users organically.

Experienced Management Team with a Lean Organisation Structure

Experienced leadership is at the helm of the company. The company's board comprises members with significant business experience in travel, hospitality, e-commerce, and finance. The leadership's domain knowledge, coupled with industry relationships, has provided opportunities to grow organically and through strategic acquisitions.

Go through the company’s red herring prospectus for a complete overview of the strengths and other aspects of the IPO. Before investing, have a holistic view of your financial goals and risk tolerance.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their own research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.

Investments in securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI prescribed Combined Risk Disclosure Document prior to investing. Brokerage will not exceed SEBI prescribed limit.

FAQs

The offer for sale comprises up to 66,677,674 equity shares of face value of Rs 1 each.

The value of the fresh issue of equity shares aggregates up to Rs 120 crores.

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