Ixigo, a leading travel tech platform, has made a strategic move into the train food delivery sector by acquiring a 51% stake in Zoop Web Services Private Limited, a prominent e-catering partner with Indian Railways Catering and Tourism Corporation (IRCTC). The acquisition, approved by Ixigo’s board on October 24, 2024, involves a transaction valued at ₹12.54 crore, including a non-compete fee. This acquisition allows Ixigo an option to purchase the remaining 49% stake in the future.
Expanding Ixigo’s Train-Centric Offerings
Zoop, established in 2016, has been a key player in the e-catering landscape for trains, currently operating across 192 stations and partnering with over 400 restaurants nationwide. With services such as meal bookings, PNR status checks, and real-time order tracking, Zoop’s inclusion allows Ixigo to expand its offerings, making train journeys a more convenient and enjoyable experience for travelers. This move aligns with Ixigo’s revenue strategy, as the train segment generated 53% of its revenue in Q2 FY25.
Aloke Bajpai, Ixigo’s Group CEO, emphasized the market opportunity for train food services, which, according to Zoop’s management, has a potential total addressable market (TAM) of around $1 billion. Ixigo’s CFO, Saurabh Devendra Singh, noted Zoop’s frugality and resilience, having grown to over ₹7 crore in revenue in FY24 with profitability, all from a modest capital base.