Dutch tech investor Prosus, which acquired a 10.1% stake in travel aggregator ixigo (under its parent Le Travenues Technology) on October 10, is now working on a deal to further raise its shareholding in the online travel agency (OTA).
Prosus to raise ixigo stake to 15%
Through the ongoing deals, Prosus will increase its stake in ixigo from 10.1% to around 15%.
“Peak XV Partners will sell about 3% to Prosus, while Elevation Capital will sell another 2%, allowing the investor to boost its holding by an additional 5% to roughly 15%,” a source familiar with the matter said.
According to market intelligence platform Screener, Peak XV Partners currently holds a 10% stake in ixigo, while Elevation Capital owns 5%.
Prosus eyes travel sector with ixigo stake
Prosus’ October 10 investment in ixigo was made at a share price of Rs 280 each, slightly above the 10-day volume-weighted average price (VWAP). On the same day, ixigo shares traded at Rs 315.70 on the NSE, up 0.95% as of 1:15 pm.
Strategy in India
Prosus is focused on building a platform play in India, the world’s third-largest startup market. Its portfolio includes major platforms such as Meesho (e-commerce), Urban Company (services), Swiggy (food and groceries), and Rapido (mobility), among others.
With the ixigo (travel) investment, Prosus aims to re-enter India’s travel sector, a strategic area for the company. Previously, it backed Goibibo in 2007, later selling it to MakeMyTrip (MMT) in 2017, becoming a shareholder in India’s largest OTA. That stake was subsequently sold to China’s Ctrip. In May this year, Prosus fully acquired Latin America’s Despegar for $1.7 billion to further strengthen its travel portfolio.
Once the ixigo deal is complete, Prosus will become the single largest shareholder in the company. This investment also marks Prosus’ first private investment in public entity (PIPE) deal in India.
“Going forward, Prosus will look at acquiring significant stakes in companies either through private investments or via PIPE deals,” a source said.
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