Yatra, travel portal: The IPO will see the company raise 750 crores in fresh capital for strategic investments, acquisitions, and unnatural growth; investment in customer acquisition and retention, technology, and other organic growth initiatives, among other things.
Yatra Online Ltd filed the draught prospectus for its initial public offering (IPO) in India on Friday, amid an improving outlook for the domestic travel industry as cases of covid-19 decline.
Yatra is now trading on the Nasdaq. The IPO will see the company raise 750 crores in fresh capital for strategic investments, acquisitions, and unnatural growth, as well as investments in customer acquisition and retention, technology, and other organic growth initiatives, among other things.
Furthermore, the company’s promoter companies intend to sell 9.33 million shares through an offer for sale in the IPO.
The entire value of the IPO is estimated to be approximately 1,000 crores, according to a person familiar with the company’s fundraising preparations who spoke on the condition of anonymity.
“In terms of gross booking revenue as well as operating revenue for fiscal 2020, our company stands at India’s largest corporate travel services provider and the second-largest online travel firm in India among key OTA players.” “We have the most hotel and lodging tie-ups among OTA players, with over 2,094,000 as of October 29th, 2021 (source: Crisil report),” the company stated in its draught prospectus.
According to the company, it has about 700 large corporate customers and over 46,000 registered SME customers. Yatra had over 28k registered travel agents as of September 30th.
The company has contracts with 93,500 hotels and homestays in around 1,400 cities across India. In fiscal 2021, 500,000+ standalone hotel room nights were booked via its platforms, with more than 350,000 room nights booked from April to September 2021.
“We believe that India is one of the world’s largest and fastest-growing economies, with a sizable middle class, rising disposable income, and a quickly expanding online consumer segment.” Following a 7.3 percent fall in FY21, India’s GDP growth is predicted to rise to 9.5 percent in FY22. Given the scale and growth dynamics of the travel business, we have strategically focused on both corporate and consumer segments,” according to the draught prospectus.
The pandemic has resulted in a massive decline in revenue for the corporation, which was 694.2 crore in FY20. In the six months to September, the company recorded sales of 89.4 crores and a loss of 19 crores. Due to the influence of covid-19, the company reported a revenue of 143.6 crore and a loss of 118.6 crore in FY21.
“In the six months till September 2021, from B2B businesses and in fiscals 2021, 2020, and 2019, we generated 66.22 percent, 71.19 percent, 38.82 percent, and 40.83 percent, of the revenues from operations from air ticketing, 17.73 percent, 12.48 percent, 45.66 percent, and 47.39 percent of our revenues from hotels and packages and 16.05 percent, 16.33 percent, 15.52 percent and 11.78 percent of our revenues from operations from the sale of other services,” the company said in its draught prospectus. The company’s share offering is advised by investment banks SBI Capital, DAM Capital, and IIFL Securities.
Yatra’sRateGain Travel Technologies, which provides technology services to travel and hospitality companies, raised Rs. 1,336 crore in a share sale in December. In August, Yatra’s competitor Ixigo filed for a 1,600 crore IPO.
The authored article is written by Darshana Joshi and shared with Prittle Prattle News exclusively.
