Online travel aggregator ixigo has marked its entry into the train food delivery segment by acquiring a 51% stake in Zoop Web Services Private Limited for ₹12.54 crore ($1.4 million). The strategic acquisition, which includes both primary and secondary share purchases, positions ixigo to tap into the growing railway e-catering market estimated to have a total addressable market potential of $1 billion.
Zoop, founded in 2016 by Puneet Sharma and Manoj Kumar, is an IRCTC-authorized food delivery aggregator currently operational across 192 railway stations in India. The platform has established partnerships with approximately 400 select restaurants, providing travelers with diverse meal options delivered directly to their train seats.
Following the acquisition, ixigo has already launched a new “Food on Train” feature on its train apps (ixigo trains & ConfirmTkt), enabling passengers to pre-order meals for delivery at stoppage stations. The feature includes real-time order tracking capabilities and offers free cancellation before cut-off time, enhancing the overall travel experience for its users.
“The tight integration of the delivery logistics with our large train user-base and the PNR status and crowdsourced train status data will help us deliver meals efficiently directly to the train berths of our users,” said Aloke Bajpai, chairman, managing director and group CEO of ixigo. The acquisition also presents opportunities for ixigo to strengthen its partnership with IRCTC, creating synergies to drive both e-catering and ticketing growth.
The deal comes at a strategic time for ixigo, as the company reported strong financial performance with a 26% year-over-year increase in revenue from operations to ₹206.5 crore in Q2 FY25. The company has also achieved significant growth in cash flow from operations, recording ₹70.4 crore in H1 FY25, marking a 262% annual increase.
According to Saurabh Singh, ixigo’s group chief financial officer, the train food order market has the potential to expand 10-15 times from its current size. This expansion opportunity aligns well with ixigo’s strategy, as 53% of its revenue in Q2 FY25 came from the train vertical. Zoop itself has shown promising performance, generating a revenue of ₹7.65 crore in FY24 while maintaining profitability.
The acquisition represents ixigo’s third major strategic purchase, following its previous acquisitions of train booking app ConfirmTkt and bus aggregator platform AbhiBus in 2021. The company has also secured an option to purchase the remaining 49% stake in Zoop, subject to the fulfillment of certain conditions.
This strategic move by ixigo reflects the growing importance of value-added services in the Indian travel tech sector. With a nearly 30% ancillary attachment rate during the last quarter, the addition of food delivery services could significantly enhance ixigo’s revenue streams while addressing a crucial need in the railway travel segment.
For the broader Indian startup ecosystem, this acquisition highlights the potential for strategic integration between travel tech platforms and specialized service providers. It also demonstrates how established players are leveraging technology to solve traditional pain points in the travel sector while creating new revenue opportunities.
As ixigo continues to expand its service offerings and strengthen its position in the train travel segment, this acquisition marks a significant step toward creating a more comprehensive travel experience for its reported 480 million annual active users while tapping into the lucrative railway e-catering market.
