SUMMARY
- Ixigo acquires a 51% stake in Zoop for Rs 12.54 crore, marking its entry into the train food delivery market.
- The acquisition strengthens Ixigo’s service offerings with the launch of a ‘Food on Train’ feature for 192 railway stations.
- Zoop’s profitability and minimal capital investment highlight the potential of the $1 billion train food delivery market.
Ixigo, a travel tech platform, has acquired a 51% stake in train food delivery service Zoop for Rs 12.54 crore. This acquisition marks Ixigo’s entry into the fast-growing train food delivery market in India, where Zoop, an IRCTC-authorized e-catering partner, operates at 192 railway stations. The deal includes non-compete fees and was funded through a combination of primary and secondary share purchases. Ixigo retains the option to purchase the remaining stake, subject to specific conditions.
The acquisition aims to enhance Ixigo’s service offerings for train passengers by integrating Zoop’s food delivery expertise with Ixigo’s distribution reach and live train information. Ixigo has also launched a new ‘Food on Train’ feature, allowing travelers to pre-order meals, track deliveries in real-time, and cancel orders before the cut-off time.
Zoop, founded in 2016 by Puneet Sharma and Manoj Kumar, reported a revenue of Rs 7.65 crore in FY24, demonstrating strong profitability with minimal capital investment. Ixigo’s management is optimistic about the food delivery market’s potential, with estimates placing the total addressable market (TAM) for train food delivery at nearly $1 billion. This strategic move positions Ixigo to monetize the train audience better and provide a more comprehensive onboard experience.
