In a remarkable display of growth that highlights Tamil Nadu’s emerging travel technology sector, ixigo’s shares jumped nearly 5% following the announcement of exceptional first-quarter results for FY25. The Chennai-headquartered travel technology company reported a 78% year-on-year increase in profit after tax, reaching Rs 14.9 crore and setting new benchmarks for the state’s digital enterprises.
The company’s strong performance saw its stock rise to an intraday high of Rs 178.20 per share, significantly outperforming the broader market as the BSE Sensex traded 0.86% lower. This robust showing demonstrates the resilience and growth potential of Tamil Nadu’s technology sector, particularly in the travel and tourism space.
Dr. Shankar Subramaniam, President of the Tamil Nadu Technology Business Forum, emphasizes the significance: “ixigo’s performance is a testament to the state’s growing prominence in India’s digital economy. Their success creates a blueprint for other local travel tech startups and strengthens Tamil Nadu’s position as a technology hub.”
The company’s financial metrics showed impressive growth across all key parameters. Revenue from operations increased by 16% year-on-year to Rs 181.9 crore, while EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) surged 62% to Rs 19.2 crore. The company’s gross transaction value (GTV) reached Rs 2,988 crore, marking a 27% annual growth.
Saurabh Devendra Singh, Group CFO of ixigo, attributes this success to strategic focus: “Our Q1FY25 results reflect our disciplined approach to balancing growth and profitability. We’re particularly proud of our contribution to Tamil Nadu’s digital ecosystem, where we’ve created numerous tech employment opportunities and fostered innovation.”
The company’s performance has significant implications for Tamil Nadu’s startup ecosystem. As one of the state’s most successful travel tech ventures, ixigo’s growth trajectory is inspiring a new generation of entrepreneurs. The Tamil Nadu Startup and Innovation Mission reports that travel tech startups in the state have grown by 45% in the past year, with ixigo’s success story playing a crucial role in attracting investment and talent.
Industry experts note that ixigo’s strong market position, with over 48 crore annual active users, has helped establish Tamil Nadu as a key player in India’s digital transformation journey. The company’s innovative use of artificial intelligence and machine learning technologies has created a ripple effect, encouraging other local startups to invest in advanced technologies.
Aloke Bajpai and Rajnish Kumar, ixigo’s co-founders, shared their vision: “We’re committed to driving innovation from our Chennai base. The government’s focus on infrastructure and spiritual tourism aligns perfectly with our growth strategy, and we’re excited about the opportunities this creates for the entire travel tech ecosystem in Tamil Nadu.”
The company’s success has broader implications for the state’s economy. The Tamil Nadu Chamber of Technology Industries estimates that the travel tech sector could create over 10,000 new jobs in the next three years, with companies like ixigo leading the charge in innovation and employment generation.
Looking ahead, ixigo’s performance sets a new standard for Tamil Nadu’s digital enterprises, demonstrating how local companies can compete successfully in the national market while maintaining strong regional roots and contributing to the state’s economic growth.
