Travel tech platform Ixigo has announced the acquisition of a 51% stake in Zoop, a leading train food delivery service, for Rs 12.54 crore. This move marks Ixigo’s strategic entry into India’s rapidly growing train food delivery market, with Zoop, an IRCTC-authorized e-catering partner, currently serving 192 railway stations across the country. The deal involves both primary and secondary share purchases and includes non-compete fees. Additionally, Ixigo retains the option to acquire the remaining stake in Zoop, subject to certain conditions.
With this acquisition, Ixigo aims to enhance its offerings for train passengers by integrating Zoop’s food delivery services with Ixigo’s established distribution platform and live train tracking features. The travel platform has also launched a new “Food on Train” feature, which allows passengers to pre-order meals, track deliveries in real-time, and cancel orders before the cut-off time.
Founded in 2016 by Puneet Sharma and Manoj Kumar, Zoop has demonstrated strong profitability, reporting Rs 7.65 crore in revenue for FY24 with minimal capital investment. This acquisition aligns with Ixigo’s strategy to better monetize the train passenger market, with estimates placing the total addressable market (TAM) for train food delivery at nearly $1 billion.
Key Highlights:
- Ixigo acquires a 51% stake in Zoop for Rs 12.54 crore.
- Zoop operates as an IRCTC-authorized e-catering partner at 192 railway stations.
- Ixigo plans to integrate Zoop’s services with its platform to improve the passenger experience.