Traveltech firm Ixigo is acquiring 51% stake in train food delivery app Zoop

ixigo, a prominent player in India’s travel booking industry, is acquiring a 51% stake in Zoop Web Services Private Limited, a train food delivery service provider.

Zoop is an IRCTC-authorized e-catering partner, serving travellers with meal options on trains across India.

The acquisition, valued at Rs 12.54 crore, is structured as a combination of primary and secondary share purchases and includes a non-compete fee.

With this acquisition, ixigo aims to strengthen its offerings in the train travel segment, which has shown considerable growth potential.

Strategic intent and growth goals

The acquisition marks Ixigo’s entry into the growing e-catering industry within India’s railway network. With Zoop’s well-established operations across 192 stations and partnerships with 400 restaurants, ixigo aims to enhance its services for train travellers by integrating Zoop’s food delivery capabilities with its own platform.

Ixigo’s leadership emphasized the importance of food services as an integral part of the travel experience, particularly on train journeys where food options are limited.

The acquisition aligns with Ixigo’s strategic goals, as the train segment contributes significantly to its revenue. 

Deal structure and financial details

Ixigo’s board approved the acquisition on October 24, 2024, and the transaction is expected to close by the end of the year, subject to certain conditions.

The investment is funded through a mix of primary and secondary share purchases, granting Ixigo control over Zoop’s operations as a subsidiary. The deal includes a cash component with electronic payments amounting to Rs 12.54 crore.

Additionally, Ixigo retains an option to acquire the remaining 49% stake in Zoop, allowing future expansion based on Zoop’s performance and market conditions.

Enhancing train travel experience with integrated services

With Zoop’s acquisition, Ixigo has launched a “Food on Train” feature, enabling users to pre-order meals at various railway stations.

Passengers can choose from a range of meals that are delivered directly to their seats, with real-time tracking and cancellation options available until the cutoff time.

The new feature aims to improve the dining experience for travellers by offering diverse food choices and reliable delivery, leveraging Ixigo’s train scheduling data to ensure seamless service. This integration is expected to reduce missed deliveries and enhance user satisfaction.