Online travel platform ixigo will acquire a 54.66% stake in Brevistay, a flexible-stay hotel booking platform, for ₹65.69 crore through a combination of primary and secondary share purchases.
Founded in 2016, Brevistay specialises in flexible hotel stays and has built a network of directly contracted hotels across India. Upon completion of the transaction, Brevistay will become a subsidiary of ixigo. The company also retains the right to acquire the remaining stake in the future, subject to agreed conditions.
Hotels business
ixigo said the acquisition is a strategic step towards strengthening its hotels business and advancing its goal of becoming a customer-centric travel platform.
The acquisition provides ixigo access to Brevistay’s hotel contracting expertise, direct hotel relationships and network across Tier-I, Tier-II and Tier-III markets. The combined entity will have a network of more than 10,000 directly contracted hotels across the country.
Supply expansion
The two companies already have a commercial relationship, with Brevistay supplying hotel inventory on the ixigo platform.
According to ixigo, the transaction combines Brevistay’s hotel supply network, contracting capabilities and operational expertise with ixigo’s AI-powered technology platform, large travel user base and multi-modal ecosystem spanning trains, flights, buses and hotels.
Synergy benefits
The acquisition is expected to accelerate growth in ixigo’s hotel inventory and direct contracting efforts while expanding accommodation options across leisure, business, transit and short-stay travel segments.
The company said the transaction would also help hotel partners improve occupancy, generate higher revenue and gain access to a larger customer base. Additional benefits include cross-selling opportunities across ixigo’s rail, flight, bus and hotel users, as well as improved hotel discovery and customer experience through AI-led technology solutions.
AI investments
Separately, ixigo will invest ₹7.5 crore in Ofintelligence Technologies Pvt Ltd through subscription to 2,394 Compulsorily Convertible Preference Shares (CCPS), giving it a 10.34% stake in the company.
The investment is aimed at strengthening AI capabilities and accelerating research and development of AI-powered software and related technologies.
ixigo will also invest ₹4.5 crore in Forgeurai Systems Pvt Ltd (Vestra.AI) through subscription to 4.5 lakh fully convertible debentures to support the development of artificial intelligence solutions.
Ixigo past acquisitions and investments include Abhibus, ConfirmTkt, Zoop and Trenes.